A white label program is a business model involving two entities where the first company creates a product or service and allows the second company to sell that service or product with its own logo and brand name. A white-label program is also known as a reseller or private-label program. In this business model, the white-label reseller essentially acts as an intermediary, taking products or services developed by the first company and offering them to customers as if they were the reseller’s own creations.
Common examples of white-label reselling include software applications, web hosting, digital marketing services, and various consumer goods.
Let us take an example to understand it easily. Assume there are three companies:
- A: – Company that develops or manufactures the white-label service or product
- B: – Company that resells services or products under their own brand
- C: – End user or customer C of company B that uses the white-labelled service or product
In this scenario, companies A & B enter into a partnership deal where A allows B to sell their product or service to customer C under B’s branding and logo.
Company A is responsible for research, development, updating, and maintaining the product or service, and Company B typically focuses on marketing, sales, and customer support, while Customer C is not even aware that the reseller is not the original creator of the product or service.
How to Choose the Right White Label Partner
White-label partnerships empower businesses to drive growth and success through collaboration. To choose the right service provider, consider the key factors outlined below.
- Strategic Alignment: This involves aligning the goals and objectives of your business with those of your white-label service provider.
a. Prioritize Shared Goals: Try to access the future plans of the service provider. Are they investing in new products and modules? Are they creating add-on products or services that help resellers grow their businesses?
b. Cater to Specific Client Needs: Ensure that the service provider’s services are in demand and that they fulfil the business requirements of your potential customer base.
c. Open for New Ideas: Make sure the service provider is open to for new ideas and ready to work on them after getting a feedback from end user.
2. Assessing the competency: While choosing service provider for your business, it is Crucial to assess the expertise and reliability of a potential white label service provider.
a. Evaluating Track Record: Review the service provider experience within the industry. A strong track record suggests their ability to consistently deliver quality products or services.
b. Industry Expertise: Consider their in-depth knowledge and expertise. A partner well-versed in the industry’s is better equipped to provide effective solutions.
c. International presence: It is crucial to determine the number of geographic locations where your service provider offers its services. A service provider operating in multiple locations is well-versed in managing various scenarios and supporting numerous customers, which is a key indicator of their establishment in the market.
3. Pricing: Pricing is an important consideration in White Label Partnerships, as it involves several components. Therefore, it’s essential to understand this aspect before entering into an agreement with a white label service provider.
a. Upfront Costs: This involves many sub-components like setup costs and additional integration cost. To ensure that new business expenses align within reseller budget, it is advisable to opt for a service provider with minimal or zero upfront costs.
b. License Fees: It is a recurring cost that white label resellers pay to use product or service. Reseller must understand how license fees are calculated, whether flat or usage-based, to ensure affordability.
c. Revenue Share: It is the portion of revenue that resellers share with the white label provider, typically as part of royalty fee. Verify if the partner takes a percentage of generated revenue. Ideally, reseller must opt for white label provider that don’t take revenue share.
d. Scalability: Ensure the pricing structure can adapt to your growing needs without becoming cost-prohibitive.
Why one should opt for white label reseller as business opportunity?
- Quick ROI (Return on Investment): By joining as a white label reseller, an entrepreneur can start the business with very little investment compared to developing their own product or service. They can begin making a profit right from the first month, ensuring a quick return on investment (ROI).
- Niche Service Provider: Owning a white-label product allows you to position your business as niche offerings, standing out through exceptional customer support. Exceptional customer service not only draws in more clients but also fosters long-term relationships, solidifying your reputation as a trusted and specialized service provider. This niche approach can lead to a loyal customer base and higher customer retention rates.
- Create Passive Income: Whether you have an existing business or a full-time job, the most attractive aspects of being a white label reseller is the ability to generate recurring passive income, with minimal involvement. This passive income can be particularly beneficial for those seeking financial stability and additional income sources.
- Build Your Brand: Launching a white label product under your own brand empowers you to establish your brand’s value in the market. As you acquire clients and build a reputation for your brand’s quality and reliability, your brand becomes more recognizable and trusted. Once your brand is established, you can introduce additional products under your brand, further strengthening your presence within the industry. This strategic expansion also contributes to long-term business success.
- No In-House Development Team: An important practical benefit of white label reselling is that you don’t need to maintain an in-house development team. The white label provider offers the necessary technology and support, saving you the costs and complexities associated with hiring, managing, and retaining a development team. This simplifies your operations and allows you to focus on sales and client relationships, making your reselling business more straightforward and cost-effective.
a. No Technical Expertise Required: Our user-friendly white label solutions are designed for a low learning curve. If you are tech-savvy, you can quickly learn Foodship products without the need for advanced technical expertise. The white label provider manages the technical intricacies, allowing you to concentrate on core business activities such as marketing, sales, and customer engagement.
b. Faster Delivery of Product or Service: White-label solutions enable resellers to launch a product or service within a matter of days. Since the entire development process is eliminated, the white label reseller is only responsible for sales and after sales support.
c. Easy to join: Unlike other businesses that may require complex compliances, white label reselling often involves no or fewer licensing or regulatory hurdles, so no entry barrier in case of starting a reseller business.
Competency & Qualities required for a white label reseller
To excel as a white label reseller, individuals should possess certain competencies and qualities that are essential for success in this business opportunity. Here’s an explanation of the key attributes and skills required:
- Sales Skills
a. Sales Skill: If you are a people person with convincing skills and the ability to identify potential customers, and effectively answer there queries you can be a great sales person.
2. Business skills:
a. Market Understanding: You need to have basic understanding of market, upcoming trends, understands how you can fulfill end user needs.
b. Basic Financial Literacy: As long as you can identify the price that a customer is ready to pay , and calculate basic profit and loss.
3. Customer Focus:
a. Customer Service Expertise: If you are a helpful person always ready to assist others, you can build long-term client relationships based on trust.
4. Adaptability:
a. Flexibility: You can be a great reseller if you’re open to new changes in the market, learn new technology, and update your services as per customer demands.
b. Problem-Solving: If you can quickly identify the root cause and resolve issues that your customers face during the course of business, it will help you build long-term relationships with your customers.
5. Communication Skills:
a. Clear Communication: If you have the ability to effectively communicate how the product or service can solve the business problems of potential customers, you can be a successful reseller.
Conclusion:
In the world of white label reselling, Foodship emerges as an outstanding choice, offering not just a business opportunity but a comprehensive package for success. With minimal upfront costs, reseller can start earning profits within the first month, ensuring a swift return on investment. Foodship empowers resellers to stand out in the market by offering top-quality products with exceptional customer support, fostering long-term relationships.
Foodship offers multiple white label products:
- Point of Sale System
- Online Food Ordering System
- Contactless Ordering system(QR Code Ordering)
- Gift Voucher system
- Rewards points system
- Table reservation system
This program requires no advanced technical expertise, as Foodship takes care of the technical complexities, allowing resellers to focus on core business activities like marketing and sales. By eliminating the need for an in-house development team, it simplifies operations and reduces costs.
