The term “white label,” comes from the old vinyl records that were sent to radio stations, nightclubs and DJs, before being released to the public. These pre-released albums were packaged in a white “generic” sleeve in hopes the receiver would play the record and, in a subtle way, the market would then be tested as to what the audience response might be.
Today, white label refers to the process whereby “Company A” manufactures a product, and then sells that product to “Company B,” so “Company B” can brand that product under their own name and re-sell it to their customers. The best example of this is Walmart. Rather than Walmart taking the time, effort and expense to create a product that expands their product line, they purchase that product from a white label company and then re-brand the product under their own brand, Great Value. Grocery stores do this all the time. White label partnerships are a great way to expand your product line while not draining your company’s resources.
In the high-tech world, there are several types of white label products, such as white label content. White label content is any type of content (landing pages, articles, blogs, etc.) that is anonymously produced, and then branded under another business’s name. White label content could almost be referred to as ghostwritten copy.
When selecting a white label partner to expand your product line, there are certain qualities you will want to make sure are an important part of their company’s best practices, such as:
- Do they share the same goals and visions as you?
- Do they have a solid reputation based on a high standard?
- Do they have a successful track record for producing high quality products or services?
- Are they well-organized and have a long-term training program to guarantee your customers are satisfied?
- Do they have great referrals that you can contact?
- Do they offer a clear and concise contract?
- Will they give you the opportunity to test their product?
The most important thing to remember about a white label partnership is that, in the end, your customers must remain yours. Your white label partner must have your interests in mind and work to make you look good. White label partners should remain completely independent from your company’s bottom line and remember, white label partners work under, not over, you.
You will also want to consider the cost and your profit margin, and shop around to make sure you are receiving the best rate. It’s a competitive market out there, so shop around.
White label partnerships are ideal when it comes to expanding your company’s product line in a way that is cost-effective, time-saving and virtually effortless.