What is white label SaaS?

When you hear the word "white label," your mind probably goes straight to branding services. That's because that's exactly what it is -- when you use an established brand name on something new and different. But there are other ways to apply the term that have nothing to do with logos or identity design.

White labeling means buying pre-built products from another company (or companies) and selling them under your own brand. This can be done in many different ways, such as by selling branded goods through third party retailers, reselling cloud computing resources like Amazon Web Services, or using software development kits offered by larger tech firms. Whatever form of white labeling takes place, it often involves making money off someone else's good work without having to put much effort into creating anything yourself.

But does this type of product ownership really make sense? Is this just a marketing strategy designed to lure people away from their favorite brands? Or is this more than meets the eye? These questions are worth asking so we decided to explore some of the issues surrounding white labeled software. Let’s dig in!

What is white labeling vs private labeling?

Before we go any further, let us explain why these terms exist at all. In short, they're similar but not quite the same thing.

Private labelling refers to manufacturing a product under your own brand name. You might sell your own version of a popular coffee maker, for example, or create a line of personal care items for women only. Private labels have become increasingly common among retail giants, including Walmart, Target, Costco, Best Buy, Home Depot, and even Apple itself. The idea behind private labels is simple -- if you can offer the exact same product as everyone else, but at a lower price, then you've got a winning formula.

The opposite approach comes along in white labeling, where you buy pre-made products and sell them under your own brand. It's basically the reverse of private labeling, except instead of offering a cheaper alternative, you simply take over a preexisting product. For instance, you could purchase a video player made by Roku, add your logo and color scheme, and sell it under your own brand. If you think about it, this concept isn't too far removed from private labelling since both involve taking over someone else’s work while adding your own stamp of approval.

So which one should you choose? Well, the answer depends entirely upon who has already created the solution you wish to emulate. A great deal of research will need to be conducted before you commit to either option, especially if the item in question requires significant customization beyond its core functionality.

Is white labeling ethical?

There is no shortage of controversy surrounding the ethics of white labeling. While some argue that it's perfectly acceptable as long as consumers know what they're getting themselves into, others believe that it represents unfair competition. But regardless of whether or not you agree with those opinions, it's important to understand how white labeling works.

To begin, most white label products aren't actually owned by anyone other than the original creators. They may take inspiration from existing solutions, but they're still built from scratch by developers working within the confines of strict guidelines set forth by the original manufacturers. And although this sounds very similar to private labeling, there are key differences that separate the two approaches.

For starters, private labelling usually occurs between small businesses that don't necessarily have access to large technology partners. Since they lack financial backing, they must resort to building everything themselves. As a result, they typically end up spending less time customizing their offerings and focusing more on quality control. On the flip side, white labeling offers a larger selection of options thanks to partnerships with bigger names. However, this also means that the final product suffers a bit more due to the fact that it was developed by someone else.

In addition, white labeling tends to appeal to smaller customers who want to save money on purchasing tools rather than invest heavily in developing a full system from scratch. So whereas private labelling allows businesses to create unique solutions tailored specifically to their needs, white labeling gives them more of a choice in selecting an overall package that suits their specific requirements.

Finally, the biggest difference lies in the fact that private labelling is inherently competitive. Companies compete against each other for market share, and this competition results in improved features, better customer support, and generally higher standards across the board. White labeling doesn't allow this level of competition, which means that the consumer ultimately ends up paying less for the finished product.

However, this isn't always the case. Some companies opt to partner with other organizations purely out of necessity. For example, Active Campaign recently partnered with Weblium to provide white label versions of the email management tool’s desktop client app. Although the resulting program had certain limitations compared to the standard edition, the partnership proved beneficial for both parties.

What is a white label model?

If you were wondering what kind of relationship exists between white label software providers and their clients, here's a quick breakdown of what happens during the process.

First, a developer creates a fully functional application based on specifications provided by the buyer. Once complete, the program undergoes testing to ensure that it functions properly. Next, the code is packaged together with necessary documentation and uploaded onto the web server. Finally, a licensing contract is drawn up containing the details of usage rights and restrictions. All of this information is sent back to the client, who uses it to build his/her website(s). When completed, the site can now be marketed to potential buyers.

Now that we've covered the basics, it's time to dive deeper into the specifics of white label agreements. Here's a brief explanation of what you'll find below.

What is white label business model?

Like many other types of agreements, white label deals tend to fall into four categories depending on the nature of the agreement.

1. Single user license

A single user license grants permission to install and run the licensed software on one computer. Typically, a single user license cannot be transferred to multiple users unless specified otherwise.

2. Site license

Site licenses grant permission to install and run the licensed software on multiple computers simultaneously. Unlike single user licenses, site licenses cannot be transferred to other locations unless explicitly stated.

3. Server license

Server licenses enable administrators to install and manage the licensed software remotely via a network connection. Like site licenses, servers licenses cannot be transferred outside of the organization unless specified otherwise.

4. Enterprise license

Enterprise licenses are used exclusively by corporations looking to deploy and maintain complex applications. Because enterprise licenses require extensive setup procedures, they rarely come included with a basic installation. Instead, they're purchased separately after the initial purchase of the software.

While there are plenty of advantages associated with owning a piece of white label software, there are also some drawbacks to consider. Most notably, you won't have access to technical support or updates until you sign a separate maintenance agreement with the vendor. Additionally, you'll likely pay significantly more per month than if you'd opted for the traditional route. There are also instances where you'll lose the ability to customize elements of the program due to contractual obligations. Lastly, you risk being locked into a particular product forever once signed, which is obviously undesirable.

Overall, though, it's clear that white label solutions represent a viable way for companies to gain instant exposure to the latest trends without investing millions of dollars on development costs. With the right planning and execution, however, a successful venture can turn into a lucrative opportunity that yields tremendous rewards over time.

The concept of “white-label” or “private-labeled” software has been around since the 1990s. But it wasn't until recently that we saw more and more brands entering this market in order to offer their own services.

A lot of people are now wondering how they can get into this lucrative industry so they can start offering their own branded products instead of being an employee at another company. It's not as easy as some might think, though, because there are strict rules about what can be offered under these terms. So here's everything you need to know about white label software.

Is private labeling still profitable?

Private label licensing (or white label) is often considered one of the most valuable ways to create your own product without having to spend thousands on creating the actual software yourself. If done correctly, using a white label solution will allow you to sell your own product while also leveraging other popular solutions.

There was once a time when selling white labels through reseller partners was much easier than it is today. But with the rise of cloud computing, it has become harder for small startups to find partners who want to pay them good rates for their work. That means many have turned to online platforms like Weblium where they can list out all the features they would like for customers to see before buying. They then use those details to build their own version of the product.

As long as you don't try to charge too high a price for your product, you should be able to turn a profit by simply listing your software on Weblium. The only problem is finding a partner willing to take on such a project. Most companies prefer to keep things simple and avoid any potential headaches down the road. And if you're trying to convince someone else to develop something from scratch, it could end up taking years just to finish the first iteration. You'll probably have better luck getting a partner to buy your existing code and tweak it slightly.

In addition to making a profit off of sales, you may also consider adding partnerships to your portfolio. There are plenty of third parties that specialize in building custom apps based on templates provided by others. This allows you to save time developing new versions of your app and focus on marketing it rather than coding it.

If you decide to go down this route, you'll likely end up paying somewhere between $50-$100 per hour depending on which platform you choose. However, this type of partnership doesn't necessarily mean that you'll lose control over the finished product. Some developers even offer full access to their source codes, meaning you'd essentially have complete ownership over whatever they come up with.

How do white label companies make money?

Whether you opt to build your own product or purchase one already built, there are several different options available to you. As mentioned above, you can either approach white label projects directly through partners or you can leverage platforms designed specifically for this purpose.

One way weblium works is by charging users monthly fees after signing up for unlimited licenses. These subscriptions usually range anywhere from $19/month to $399/month. Depending on whether you sign up early enough, you'll receive discounts ranging from 15% to 50%.

Another option is to look for white label software providers that offer lifetime licenses. With these packages, you won't have to worry about renewing your subscription every month. Instead, you can enjoy peace of mind knowing you won't ever have to upgrade again unless your current plan runs out.

You can also find white label tools through various websites. For instance, you can check out sites like Weblium, Active Campaign, DashThis, and Shift4Shop. Each of these offers its own unique set of features and prices, allowing you to pick whichever provider suits your needs.

Most of these sites require upfront payments in exchange for lifetime licenses. While this seems like a great deal for consumers, it does put a strain on budgeting. After all, you'll need to purchase two separate plans - one that includes regular upgrades and one that lasts forever. It's also worth mentioning that you'll never have to worry about running out of space on your hard drive.

Can you sell a white label business?

If you've been following along, you may notice our attention shifting away from white label software itself and towards the companies behind these services. In fact, if you were to ask anyone working in this field why they chose to pursue a career in technology, they'd say that it's because they love helping other people succeed.

That said, selling your own brand isn't always possible. A lot of successful entrepreneurs started out as employees at larger corporations, and those firms tend to follow strict guidelines regarding what kind of products can be sold. This leaves smaller teams with few choices when it comes to starting their own businesses.

However, that doesn't mean you can't capitalize on your skillset and sell your software to clients looking for help. To begin with, you shouldn't expect a significant amount of compensation for each customer you bring onboard. Instead, you should aim to attract interested clients with free trials. Once you prove that they can trust you with their data, you can negotiate a lower rate for future purchases.

And speaking of negotiating...

What is a white label license?

When it comes to purchasing a white label package, you'll usually be asked to enter into an agreement outlining exactly what you'll provide to prospective clients. This document normally lays out the exact number of servers you'll need to run the application and how many licenses you'll distribute among your team members.

For example, let's say you have three staff members working together on the same project. Assuming you intend to split the workload evenly across everyone involved, you'll need to ensure that you have a minimum of four active accounts spread across three machines. Since you're going to be giving each person his or her own account, you'll also need to include instructions on how to log in remotely.

Once you reach this point, you'll move onto discussing payment methods. Many white label agreements place limits on how frequently you can update the software and how many times you can request updates during a single billing cycle. When it comes to credit cards, you'll typically be limited to processing transactions within 24 hours.

After reviewing your contract, you'll almost certainly be required to sign an NDA. This prevents your client from sharing information about your product with competitors. Of course, you'll also have to agree to protect intellectual property rights and prevent any unauthorized distribution of your material.

Finally, you'll need to determine whether your company intends to retain ownership of the final product. If you do, you'll have to inform your client in writing prior to the launch date. Otherwise, you'll hand over your copyright and trademark to the buyer upon completion.

While you may encounter challenges when selling your software via a white label agreement, it's definitely not impossible. By learning more about the process, you'll be better prepared for success. Even if you ultimately decide to stick with private branding, you'll still stand to learn a lot from the experience.

When you’re looking to start your own business in any industry, one of the first things that comes up when researching how to get started is finding out about licensing. There are so many different options available, it can be overwhelming! And while there are some great benefits to each type of license, they also come with their own challenges. If you want to understand all of them before deciding which option might work best for your business needs, here’s an overview of four popular types of licenses.

Private Label vs White Label Software

There are two main categories of license agreements that allow companies to use third party products without having to pay royalties or fees. The terms “private label” and “white label” refer to these two distinct models. Let’s take a look at both of them.

Private Label License Agreement

A Private Label License Agreement (PLSA) allows a company to use another brand name or logo on its website or marketing materials. This means that if you have a client who wants to market their ecommerce site under your trademarked name, they don't need to negotiate anything separate from that customer contract. When this happens, we say that the client has entered into a PLSA with you. It doesn't matter whether the other person owns the rights to their branding because you're still using their branding—it just looks like yours.

The most common way to enter into a PLSA is through a standard non-exclusive reseller agreement. You agree to provide services and sell the branded product on behalf of the original owner, and they pay you a commission based on sales generated by this arrangement. In exchange, you keep 100% of those commissions. Some people think that entering into such an agreement is only beneficial if the other side is paying you less than fair value. But in reality, it works both ways. By agreeing to give away 25 percent of every sale to the seller, you’re able to charge more for your service. That extra income can go towards covering the cost of maintaining your team and building new features.

White Labels

On the opposite end of the spectrum, a white label software  license agreement lets you operate a custom version of someone else’s product without ever meeting face-to-face with the creator. A white labelling model requires no upfront payment whatsoever, and instead offers royalty-free access to the source code behind the app. As long as you follow the rules laid out in the agreement, you can make changes to the program to meet your specific requirements and add additional functionality. After completing the customization process, you can then rebrand the app and offer it to clients via the web.

If you choose to create a white label solution yourself, you must abide by certain guidelines set forth in the Terms & Conditions section of the agreement. For instance, you should never alter core functions of the application, modify the user interface design, change the data format used by the app, remove security measures installed by the vendor, or share the source code with anyone outside of your organization. These restrictions ensure that customers receive exactly the experience they expect from the app.

In addition to following these strict guidelines, the developer may even require that you sign a Non Disclosure Agreement (NDA). This prevents you from sharing any details regarding the creation of the app with others besides your internal staff. While many developers will consider signing NDAs optional, they often prefer not to extend the privilege to partners who aren't bound by the same confidentiality obligations.

Here’s where things get interesting. Although white labels are typically created by independent parties, some apps offer a hybrid approach wherein the creators retain full control over the operation of the app while allowing users to customize it according to specifications provided by the buyer.

What's the Difference Between Private Label and White Label?

We mentioned earlier that both private label and white label involve giving away part of your revenue to the provider of the product. However, there are key differences worth noting. First off, let’s talk about the advantages of each model.

Advantages of Private Label Licensing Model

One advantage of a private label license is that you can avoid negotiating the price tag associated with purchasing a fully developed app outright. Instead, you can simply purchase a piece of intellectual property (IP), which gives you permission to run the app on your own servers. Not only does this mean that you can save money upfront, but it also helps protect against future legal issues down the road. Should the IP holder decide to sue you for copyright violation, you won’t be liable since you didn’t develop the app.

Another advantage of private labeling is that you maintain complete editorial control over your content. Since you’re creating your own copy rather than relying on someone else’s, you have the ability to include all kinds of unique elements that wouldn’t appear anywhere else. Even better, you can tweak the app to fit your exact target audience. One thing to note though – unlike with white labeling, you cannot completely rebrand the app after you finish developing it.

Advantages of White Labeling Model

Unlike private labeling, the white labeling model allows you to build your own customized version of an existing app. Because you’ll be working directly with the developer, you won’t have to worry about getting sued later. Plus, you'll enjoy all the perks of owning the app entirely, including being able to update and improve it whenever needed. You can even add new features to the app without asking permission from the creator.

Since you’ll be operating a custom version of the app, you can easily tailor it to suit your particular niche. For instance, you could create a digital magazine that targets millennials. With this kind of flexibility, you can focus on adding value to your readership without worrying about losing control of the entire project.

Is Private Label Same as White Label?

You bet! Both private label and white label are forms of licensing arrangements whereby the licensee gains access to content owned by a third party. One big difference between the two is that whereas private labeling involves using the licensor’s trademarks, white labeling deals exclusively with the underlying technology.

To put it plainly, if you were to apply for a private label license, you would need to submit a formal request to the original IP owner. On the other hand, applying for a white label agreement means that you already know the identity of the developer(s) whose tech you’d like to incorporate into your product. So essentially, you’re doing both at once!

How Do I White Label My Product?

Now that you know what constitutes a white label solution versus a private label, you can figure out how to proceed depending on your situation. Here are three simple steps you can follow to help determine whether you should pursue either route.

Step 1 - Understand Your Needs

Before making a decision, it’s important to answer a few questions: What exactly are you trying to accomplish with your app? Are you planning to launch a standalone platform for consumers or small businesses? Or perhaps you want something designed specifically for online retailers. Once you identify your goals, you’ll be able to narrow down potential solutions accordingly.

For instance, if you plan to release a mobile app targeted toward consumers, you’ll probably want to invest in a private label license. On the other hand, if you intend to create a B2B tool for accountants, you’ll likely opt for something more flexible, such as a white label agreement.

Step 2 - Decide How Much Control Over Development You Want

Once you've decided on your desired outcome, you’ll need to assess your level of involvement during development. The degree to which you participate will ultimately dictate which licensing model is right for you.

With a private label agreement, you’ll remain hands-off throughout the whole process. You’ll merely buy the IP, install it on your servers, and send traffic to the hosted landing page. From there, the developer handles everything else, including updating the app, adding new features, and providing support.

By contrast, with a white label license, you’ll gain complete control over the app’s coding, but you’ll lose direct oversight of the final result. To begin, you’ll collaborate closely with the developer to identify areas needing improvement. Then, together, you’ll implement changes until everyone agrees the finished product meets your expectations.

Step 3 - Determine Whether You Need Any Special Permissions

Even if you have no intention of modifying the app, you might find that the developer requests special permissions. Examples include requiring the ability to upload files larger than 4GB onto your server, or installing additional plugins. Before granting approval, ask yourself why the developer needs this capability. Is it required to deliver optimal performance across multiple platforms? Or is it necessary to satisfy regulatory standards? Only grant these permissions if they’re absolutely essential. Otherwise, you risk running afoul of copyright laws, which could lead to costly fines or lawsuits.