Business is everywhere. Big businesses like Walmart, Amazon, and eBay make hundreds of millions of dollars in sales every day. And in recent years it’s become easier and easier for people to start their own small businesses. Etsy, Fiverr, and Bonanza have allowed individuals to create and sell their own products and services.
What’s clear is that all of these products and services come from somewhere. What you might assume is that most of these businesses, large or small, manufacture all of their products themselves. What you might not know is that a majority of the biggest products in both the online and physical marketplaces are white labeled. And YOU can get in on the action.
In this article, we will discuss what a white label product is, common expectations about it and their realities, the white label process, and how your business can move forward with white label marketing products. Let’s get started!
Table of Contents
- What is a White Label Product or Service?
- What Label Marketing Products & Services: Expectations vs. Reality
- How Do I Start White Labeling Products and Services?
What is a White Label Product or Service?
When Company One builds a product or service and sells it to Company Two with Company Two’s branding, that is called white label marketing. From snack cakes to advertising, if production can be handled by one company and branding and sales can be handled by another, you can white label it. By either starting a new business of your own or adding another product or service to your current offerings with little to no effort. A bit of research and a dab of elbow grease can get you into the market in no time at all.
White Label Marketing Products and Services: Expectations vs. Reality
Whether you’ve been in the industry for a while or you’re just getting your feet wet, you’ve probably heard or considered some of these common expectations about white labeled products:
There Isn’t A White Label Option For My Industry.
Recall our conclusion from earlier: if production is handled by one company and branding by another, it can be white labeled. The beauty of this model is how difficult it can be for consumers to detect. The reality is, it’s everywhere. Many companies you wouldn’t think utilize this for their products actually do. Walmart takes this approach with their Great Value, equate, and And1 brands, and Target uses Market Fresh, Up and Up, and Goodfellow just to name a few. If you’re serious about pursuing this yourself, there’s a good chance someone is ready to partner with you.
White Labels Are Easy to Recognize and Bad For Business.
While some products are easy to spot, others blend into store shelves and online shopping carts with the best of them. The beauty of marketing white label products comes from your own imagination and a good partnership. As long as you have a solid brand and the right partner, you’ll be able to create an experience for the consumer that no other company or brand is able to accomplish.
The Reseller Has Zero Control Over the Product.
Personal research on your potential partners is a prerequisite to profound success. White label partners are their own businesses and each of them operate at different levels. Some companies only allow a logo here and a color swap there while other companies give you a blank slate and a unique template and the rest is up to you. First, make sure you know what kind of experience you want to give your consumers. Then, connect with prospective partners to see what capabilities and flexibility they are able to offer that match your vision. You’ll be surprised at the amount of freedom you’re able to achieve in this market.
White Label is Expensive.
In all actuality, many of the companies offering white label marketing products are selling much of the same product to a lot of different resell partners. They’re able to produce large quantities and stockpile their inventory and are able to sell their products at a significant discount. After that, the price point is entirely up to you. As long as someone is willing to purchase your product, you have the freedom to set whatever price you feel is sustainable.
Selling White Label Goods or Services is Incredibly Difficult.
After you implement your own branding, the goods and services you’re selling are no different from the other goods and services within the market. In some cases they’re identical. It will take time to develop a good sales strategy. You may have to make adjustments to your branding or marketing to really get your product to stand out. Once you find yourself in the perfect groove, you’ll be selling right up there with the rest of them.
There are definitely pros and cons to white label marketing products and it isn’t for everyone. But rest assured if you’re looking, there are options to add to your product portfolio with the potential to dramatically boost your bottom line.
How Do I Start White Labeling Products and Services?
You could be asking yourself, “How do I start white labeling?” There are hundreds of ways to set up your business for selling these products. You can add a product or service to your current offerings or build a brand and a marketing plan to sell something entirely new. In either case, consider following these steps as you start this process:
1) Identify the Product or Service
There are thousands of possible products that you could white label. Some of the most influential retailers sell cleaning products, essential oils, and a variety of foods with their own branding. Big companies like Walmart and Target have their “in-house” brands which are usually just white labeled versions of big-name products. Smaller companies like your local grocery store have undoubtedly created their own branding for popular products as well to maximize their profits.
It’s not just physical products either. Digital marketplaces and advertising agencies use white label companies as fulfillment options to bolster their revenue portfolio, scale their businesses, reduce overhead costs and risk, and so much more. Website builds, customer service, SEO, and PPC (pay-per-click) advertising are all types of MaaS (marketing as a service) models that white label companies are fulfilling all over the internet. Perhaps you already have a business with a loyal customer base, why not give yourself another source of revenue and add SEO to your line of products? Or a new shampoo to go with your line of glittery eyeshadow?
2) Find A Trusted and Qualified Partner
Not only are there countless products, there are just as many fulfillment companies which means you have options. Some white label companies offer only the manufacturing of a product and service while others offer new content creation, more client-specific alterations, and customer service solutions. Alibaba is one great example of a white label company with thousands of ready to ship products. Here at Boostability, we are a white label SEO agency ready to help give your digital marketing consumers more bang for their digital buck with SEO. Researching partners will help you understand how much freedom and customization you have over the products you’re wanting to resell.
When you’re choosing the right partner, be mindful of the type of malleability and coverage you’re looking for. (Note: You may have heard the term private label which is a little different from white label. Learn what the difference is between white label and private label here.) Consider asking about these factors when you’re searching for the right partner:
- Ask for reviews and testimonials.
- Ask for success stories.
- Read reviews on the quality of the products you’ll be reselling.
- Research fulfillment times.
- Research customer service expectations and experiences.
Come to know everything you can find out about your potential partner. Knowing more about your potential partner’s goals and processes helps your business put things into a better perspective on how you’ll potentially work together.
3) Establish Expectations
Because you’ve done the research, you should know exactly what your partner is capable of and how much work is expected from you. If you jump into a partnership with little expectations or set goals, your partnership could fall apart. When you’re talking with prospective partners, consider knowing and discussing these expectations you want to set:
- How much of the product are you able to customize?
- How much of that customization is provided by the partner and how much of it are you going to take on yourself?
- Does your white label marketing product come with questionnaires you need to update?
- Do you have logos and packaging you need to design for your new health-conscious snack chips?
- What’s the turnaround time from submitting a request to receiving the final product?
All of this is key to setting up and maintaining your business relationship. And it’s not just for you, knowing what your new partner will handle and what you need to do helps you set proper expectations for your incoming customers. Expectations set through clear, honest communication is the fastest and easiest way to build trust with your customer base, existing or otherwise.
4) Set A Price Point That Will Be Sustainable
Because the goods and services you receive from a white labeled company are not solely your own, your cost will be priced significantly lower than market value, the wholesale price. It’ll be up to you to set a market competitive retail price. While some companies may have suggested retail pricing, a good rule of thumb will be peering into the market at your competitors to find a price point for your products that your potential customers will respond to and that you feel comfortable with. Don’t forget to add the work you have to perform for proper customization into your price points, just because you’re offering an important good or a service to someone else doesn’t mean you shouldn’t get paid for it. You may need to make adjustments during the process and that’s okay.
5) Create A Quality Sales Pitch
You’ve figured out how to white label and you’ve found a partner. You’ve set expectations with your new partner and your incoming customers, set a price point, and now it’s time to sell. The goal is to help other people see how unique and useful your product or service is, and to get them to see that message often. There are multiple ways to amplify your sales pitch:
- Start with people you know and introduce your new product.
- Highlight your products and services on social platforms.
- Talk to other business owners or attend local activities.
- Engage in the global conversation.
- Ask for referrals and continue to build trust.
Get Help in Marketing Your White Label Products and Services
White label products are everywhere. Whether you’re looking to add something to your growing list of product offerings or want to start a business from scratch, the solution is out there. As long as you remember the steps outlined above, you’re bound for success.
If you’re in the digital marketing space, SEO is quickly becoming a necessity for all businesses to compete online and generate sustainable revenue. Boostability has been providing white label SEO services for over a decade, and we have a team dedicated to delivering both a quality strategy and helping you learn how to sell most effectively. For any of your other marketing questions, learn more about our SEO partner marketing program and get in touch with a digital marketing expert for more information!
Additional Helpful Resources: