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White labeling opens the doors to newcomers that are willing to provide financial services by giving them an opportunity to “borrow” a ready solution for that. In a more technical explanation, it is a legal protocol, which allows for a product or service to be rebranded according to the design of another company’s brand and sold to the latter for further use. If you are curious about the origins of the term, the concept is simple: you whiten something that has been written in order to write over again.
Let’s look at the pros and cons of this service from a marketing perspective.
First, it is important to say that companies across various industries have already taken advantage of the benefits of white labeling. For instance, have you ever thought of large groceries stores that buy products from other companies and manufacturers and then simply put their label on them? Well, what if we tell you that the same can be done with software. Representatives of the marketing profession take different views on this practice of white labeling SaaS.
Talking of the pros:
-Increasing the credibility of the brand
-Acquiring more loyal customers
-Significantly saving resources such as time and funds
In fact, white labeling a software can be a great tool for digital marketing purposes. Many agencies place their brands on logins and reports that are later received by customers, which increases brand awareness, as well as its image and trustworthiness. Besides, this solution is a great option for those willing to save time and money that would otherwise be required to build software from scratch. White labeling gives marketing firms an opportunity to forget about reinventing the wheel, and enjoy an intuitive software built by professionals with the necessary expertise in the field.
Talking of the cons:
-Prices can vary
-Reversed effect on the credibility of the brand
-Good reputation is typically shared
At times, the invoices for the software might be much higher than its actual price. However, if a customer discovers this, there can be a significant threat to the existing customer relationships, causing long-term damage.
There can also be a reversed effect on the credibility of the brand. Most of the big white label services providers have a trusted name in the industry. In such cases, marketers are willing to proudly display the SaaS they are using on their website.
The advantages and downfalls of using a white label solution in the context of a marketing firm may influence the final decision differently according to the individual nuances of the case. In any way, the fact that numerous companies are already enjoying the convincing benefits of white label tools is increasingly eliminating skeptical thoughts in the mindset of marketers.