Benefits of white labelling
Many MSPs come to us looking for a turn-key product that they can use in-house themselves and also offer as a subscription to their clients. For their clients, they want to provide a white-label product. One that they can sell to complement their managed service, but branded as their own, with minimal upfront investment (compared to DIY).
When it comes to adding new products to your portfolio, there is no better way than to offer a white-labeled product or service. It allows you to put your labels, branding, and logos on the third-party tool and present it as your own. You will not need to spend time developing a product or service yourself. Also, offering this service means that your clients will not need to go elsewhere for any additional products or services they require.
Here’s why it works
Add a new revenue stream
Perhaps the most prominent and tangible benefit of white labeling is that it quickly creates a new revenue stream for your company. Since you now have an additional offering, you’re able to deliver what your customers have asked for while attracting new customers who are interested in the white-labeled product.
Save money (and time)
You can start with a ready to use, white-labeled product rather than take the time to develop the technology yourself. It’s complete and ready to deploy.
Personalize your white-labeled product
You will have your platform, call it or brand it any way you want. You can start the productization by setting your pricing and developing your product options. And finally, sell. All without having to spend anything on development!
Its clear customers have been asking for a solution, and by adding it as a white-labeled product, you can now say with confidence that you have delivered.
Cash flow management
If you are already enjoying high-profit margins or are being careful with cash flow, you will want to maintain that. Implementing a white-labeled product or service, you will know your TCO and ROI upfront.
Look for a pay as you grow offer.
The first benefit of this payment model is that the provider wants you to grow and will support you, and you only pay for what you use. The second benefit is little upfront costs when compared to DIY. As you get more customers, volume discounts start to increase profit further. You won’t need to add additional staff to look after your white-labeled solution as you’ll have a support agreement in place, which you can offer back to back. You can have the product up and running and ready for sale very quickly.
Risk of in-house development (DIY)
However, if you decide to develop your product from scratch, you are looking at investing tons of money and time. Money and time, you could instead be used to extend your business. (And I’m confident that your core business is not writing white-labeled software. If it was, you wouldn’t be reading this article.) As problems arise, the initial certainty of the final product’s ROI disappears. Instead, when you white label, you’re paying a fraction of what it took to create the product.
- You will be reinventing the wheel. If you had the expertise, it is your core competency, and you would have done it already.
- You will take resources away from other parts of the business to develop the project and then provide ongoing maintenance and support
- You will create tools that already exist (at a higher cost)
- You will have to become an expert to avoid problems.
I’m ready to talk to the experts
“I need to provide my customers with a portal that shows just their interfaces, equipment, etc. and NOTHING else.”
– This was solved with user roles using NMIS and opCharts.