According to our best friends at Wikipedia:
“The name derives from the image of a white label on the packaging that can be filled in with the marketer’s trade dress. Its origins can be traced to vinyl records. Before records were to be released to the public, often before official artwork was designed and printed, promotional copies were sent out in a white sleeve to DJs to solicit radio and nightclub play, in an effort to build hype and gauge public interest by the record labels, ultimately to better estimate manufacturing quantities. This created a situation where certain respected or well-connected DJs would have exclusive copies of material, immediately increasing demand on certain big records. Occasionally this term refers to records whose labels had been torn off or covered with a white label by competing DJs to conceal which records they were using.”
As an entrepreneur with a business problem, your solution may be to try and DIY. When it’s all said and done, that is what being an entrepreneur is all about, right?
WRONG! Building a customized product to meet your company’s exact needs or expectations is a recipe for disaster. You may find yourself exhausting working capital or overworking your staff’s creative juices by:
- Trying to reinvent the wheel, making mistakes that many before you have already made and overcame
- Dramatically slowing down your time to market, as you try to troubleshoot and increase your learning curve outside your core competency
- Spending too much money developing tools and solutions that already exist in other formats
- Missing out on resources and expertise in the specific space where you need a focused solution
You can avoid this costly mistakes by opting for a white label solution. “White label” refers to a fully supported product or service that’s made by ORDO AB CHAO Design but sold by YOU. White label products and services are purchased without branding. That way, you can customize the product with your own brand, logo and identity, allowing customers to associate the product with the reseller.
So what’s the trade off? We can manufacture the product and focus on finding cost-effective ways to make the product, without concern for the product’s marketing.
If you’re still not sure whether a white label solution is for you, here are some thing you should consider:
- It’s quick and easy to brand. White label solutions can offer advantages if you’re trying to think of ways to add new features to your business. White label solutions are generally fully integrated and ready-made, which makes branding very easy. As the reseller, you’ll be free from concerns about needing to spend time and money on research or development. You can add your own branding and identity, and get back to business.
- It keeps your customers happier. Your customers have an end goal, and using a white label solution can give them a clear and simple path to reaching it. The extra months (or even years) that it takes to develop your own solution can force customers elsewhere for solutions. You can avoid this with a prepackaged solution that meets their needs immediately.
- It saves you time and money. Developing a solution from scratch takes a large amount of financial and human capital resources — not to mention time. While a custom solution may seem at the outset to be the best alternative, you may quickly find that the effort derails internal business processes and busts budgets. Even if you think you can build it yourself, it’s important to factor in time for marketing. Remember the time it takes for architecture, design, building, and testing the solution. If you require a fast deployment, cutting corners in any of these steps can leave you even further behind. When time is of the essence and you need to be speedy, investing in an existing solution may be more cost-effective in the end.
- It allows you to focus on your business’s core competency. In many cases, the solutions that companies hope to build themselves fall far outside of their areas of expertise. It’s not smart to stretch your resources to do something that doesn’t fit within your core competencies. Be sure to look closely at the solution you need and compare it to your available resources to help you decide whether a white label solution would help you reach your goals more efficiently. Prepackaged solutions provide an opportunity to trust the experts in the specific space you are focused on, and avoid making the same mistakes that others have made before you.
In short, white label solutions can help you utilize your business’s unique branding to offer a product or service without investing in infrastructure or technology creation around the solution. The result: You can focus on building your brand and selling your services while simplifying the conversion path for your customers.