What Is White Label Solution? [Complete Guide]

Last updated on December 8th, 2022

One of the most difficult things I find with running a business is constantly coming up with new products to offer your customers.

Only 11% of new product consumers stay engaged after a year, but coming up with new products is not that easy. There are lots of different steps involved, a ton of funding, and 95% of new consumer products fail every year! 

White Label Solution

Luckily, there is an answer to this issue that I love to recommend – white label solutions. 

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If you need to learn more about white label solutions, then I have pulled together this guide. I am going to dive into this topic and hopefully cover everything you need to know in one place. So, check out the information below!

What Is A White Label Solution?

First, let’s start out with a definition – what is a white label solution?

White label solutions (sometimes also called private label solutions) are defined as when a product (or service, or project) is rebranded and resold by a company although they did not create it.

One company has created a product and sold it to another company, and that second company then rebrands the product to be their own and sells it as though they came up with it in the first place. 

This may sound like ‘cheating’ but white label solutions have been around for decades and are already an important part of our economy.

Around 19.5% of the whole retail market is made up of private label accounts. Have you ever heard of how some dried spaghetti is made in the same factory, but sold under different brands (and prices) despite being the same product? That’s an example of white labeling! 

But white label solutions apply to more than just actual physical products. 

Other examples of white label solutions all kinds of businesses use include digital agencies which allow you to outsource your marketing, ghostwriting where other companies write your content for you (49% of businesses do this), or those drag-and-drop landing page builders which help you create the landing pages your website or app needs.

There are also companies which offer white label e-commerce solutions which allows you to outsource the maintenance of your online store, or offer you a template of an already built e-commerce site ready for you to immediately start using under your business’s brand.

The same goes for outsourcing your social media maintenance – paying an agency to handle your content creation and social media is another example of white label solutions! 

So, white label solutions are everywhere and they are a vital part of helping a business expand and grow – but how? 

The Pros Of White Label Solution

I know a lot of business owners who outsource some of their processes to white label solutions. When I asked why, they gave me a range of different benefits that come with using white label solutions. Here are some of the most interesting I found.

White Label Solutions Saves You Time

The most obvious advantage of white label solutions is how efficient they are. 24% of small businesses say outsourcing increases efficiency, and it’s easy to see how when you look at white label solutions. 

White Label Solution

Coming up with your own solutions or platforms can be both expensive and take up a lot of your precious time.

You will need to put together a team, spend time designing a product, testing it, upkeep it and so on. This will not only eat into your valuable time but your funds too.

Some companies spend up to 13.6% of their revenue on research and development, with figures in the US alone reaching $493 billion!

As a result, white label solutions are a great way to use your funds to greater effect. While your white label solution is being made separately, you can focus on other aspects of your business to help it grow and flourish. 

White label solutions also allow you to keep ahead of your competitors. While they are busy sinking funds and time in in-house projects, your company is already offering new product after new product.

White Label Solutions Are Low Risk

Running any kind of business comes with risks but using white label solutions helps reduce them so your business is more likely to be a success (see also, ‘What Are the Guiding Principles for Ultimate CRM Success?‘). 

It’s so easy for an in-house project to go over budget. For example, an average of 45% large-scale IT projects are delivered over budget.

They can also miss the mark with your audience, as I mentioned earlier how 95% of new products fail every year.

Trying to cut corners can have drastic consequences but spending the time to properly research and test a project can also be super costly. 

However, white label solutions have already been tried and tested, thus they are less likely to under deliver. This is what makes white label solutions low risk – and you won’t be able to go over budget! 

Because white label solutions are also very low risk, then this will also have a more positive influence on your brand and it’s credibility.

Your company will be able to put out more reliable, successful products and build up its reputation.  

White Label Solutions Help You Expand Your Products

The natural step in progression and business growth is to start offering new products.

Not only does this offer new customers a reason to check your business out, but it also provides already existing customers with something new to check out and stick around to try.

82% of businesses agree that it’s more expensive marketing for new customers than it is retaining old ones, plus repeat customers spend around 67% more than new ones. 

So, it’s an important part in marketing and customer retention – but trying to come up with successful new products for your business to offer is risky, expensive, and time consuming.

White label solutions, however, allow you to quickly implement a new tool or product without the negatives.

This means your business can offer something new to its customers, continue expanding your business, and all while avoiding the risks associated with in-house projects. 

Final Thoughts

A lot of companies use white label solutions for multiple reasons. They offer lots of benefits for businesses – so if this sounds like the solution for your business, I think it’s worth a try! Good luck! 

By Ramunas Berkmanas

As a full-stack marketer, I have been actively involved in the digital marketing industry since 2014. Over the years, I have gained extensive experience in various areas such as SEO, media buying, and performance marketing. Read my story

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