The White Label model for technology companies has conquered its space because, among its many advantages, it breaks with an old paradigm: the need to maintain a development team.
By definition, the term technology is associated with the development tools capable of solving problems.
From this perspective, technology companies are also associated, almost exclusively, with the development of tools, products or services.
With White Label, however, this is no longer a requirement for technology companies. Especially for smaller ones, who may not have enough physical or financial structure to maintain a team or bear the high costs involved.
But, for this business model to fulfill its role, proving to be really effective for companies, some points need to be taken into account.
Continue reading and understand.
How does White Label dispense with the need for development?
To understand how White Label dispenses with the need to develop a new technology, it is necessary to know how it works.
In this business model, at least two companies are involved. The first is a software developer and the second acquires and starts to resell the digital product developed by the first.
That is, development still happens, obviously. But it is carried out by companies that have the specific size and expertise for this. This function becomes dispensable for the other technology companies involved in the business, usually smaller or with another focus of action.
Normally, digital products demand many hours of collective work among several professionals, including programmers, designers and software engineers.
It is at this point that resides the great potential of the White Label – it expands the possibilities of action for several companies, which now have state-of-the-art technology in their portfolios, but do not have to deal with the high costs involved in maintaining a multidisciplinary team for product research and development.
Another big differential is the possibility of brand customization. I.e, the product carries the name of the company that resells it, not the one who developed it.
These are just some of the advantages of White Label for technology companies. To better understand how it works and know all its advantages, also read this content that we build on it.
White Label Considerations for Interested Companies
After understanding how it works, it is important that companies interested in the White Label partnership also take into account some points that can optimize the experience and allow it to, in fact, be a profitable business.
Developer company reputation
Those who work with technology know that software development requires specific know-how.
Therefore, the first point to be considered by the company that outsources a digital product is the reputation of the developer company. It is essential to know its trajectory in the market, to identify the quality of the product that will be delivered.
Whenever possible, it is recommended to consult with customers and other resellers to be sure it will be a reliable business worthy of a ‘partnership’ between the companies.
Furthermore, it is valid for the reseller company to know the product in depth and carry out internal tests with it, to be sure that it meets expectations.
Closing a transparent agreement
Transparency is the watchword. In addition to choosing a recognized and validated product in the market, the contract needs to be easy to understand between the parties and legally valid.
The main information that needs to be registered are deadlines, costs, conditions, obligations and prohibitions of both parties.
The White Label model is advantageous for both the developer company and the reseller companies, as long as the agreement is not biased, favoring one side.
Maintaining a good relationship also concerns the constant exchange of information and updates about the software and recommendations by the developer company on how to optimize its use.
Choosing a company-compatible product
This is a matter of common sense on the part of the reseller company. When including a new technology in the portfolio, the company needs to be sure that it will make sense for its target audience.
Otherwise, the product will have low acceptance and, consequently, will not bring profits.
In addition to knowing what the customer is looking for, it is important to respect the company’s segment and invest in a compatible product.
Afterwards, it is also valid to plan an advantageous final price. This is also a huge benefit of White Label, as the company is not ‘locked in’ to developer presets.
Investing in promoting the product in a differentiated way, adapting it to the company’s visual identity also contributes to the acceptance of the novelty by customers and leaves no room for associations with the developer brand, complying with the premise of customization characteristic of the model.
And of course, after making sure how everything will work, you should assess whether the White Label partnership is really the best option for your business model.
