The origin of the term white label

Although the term white label is today closely linked to technology, it was first used in connection with music.

Some time ago, to get songs released, record companies used to send CDs to renowned DJs, allowing them to mix the artists' songs as they pleased. Thus, the term white label was born.

This history is closely related to white label in the business world since it consists of allowing a product or service developed by a company to be resold by other companies or individuals without having to show copyright.

White label in the business world

From music to the business world, White Label consists of outsourcing the development of products and services. In this way, a mold is created that can be customized and redistributed. In other words, a product, service, or technology is developed by a given company but is resold under the brand of an ally.

Thus, the company that originated the solution transfers the white label so that the discloser, or reseller, of the services, can add its brand.

Let's take a practical example, imagine an interpreting platform that offers its users all the necessary resources for them to offer interpreting services for their clients.

The creator offers a White Label service, which will be perceived by the end customer as a site belonging to your interpreting agency and not as an outsourced one. Think also of the banking platform that allows users to develop applications, with the company's logo, to manage financial services.

This is another White Label solution, in which the "end" company does not have to bear the costs of production or creation of the solution and does not move away from its core business. In short, we can understand White Label as a "rental service". With it, the product can be adapted to the needs and image of the reseller company.

Therefore, the supplier's name and brand are invisible to users and only the reseller's brand is visible. On the other hand, there are no rights to the license of the product or service.

White label vs. Franchise model: what is the difference?

It is common to confuse the white label model with the franchise model since the concept of both is similar. In the end, both options are based on the use of a model already tested and approved by other companies. However, the difference lies in how each is used. In franchising, an established brand is used and the model adopted by it is replicated.

Therefore, there is no flexibility to act differently and royalties must be paid to the franchisor. In addition, the franchisor's brand is visible to everyone. With White Label, you use your brand and have the flexibility to adapt the solution to your business needs. With White Label, you can customize the product or service with the face of your company and have more freedom over the selling rules.

Why invest in the white label service model?

Normally, the white label is adopted by companies that want to expand their operations. However, they do not have the necessary experience, nor the interest, to develop a solution in the field in which they want to start operating.

Advantages of the white label service for your Interpreting Agency

1 - No advanced technical knowledge is required

The White Label supplier is responsible for developing, innovating, and maintaining the solution in operation. Being the owner of the technology also tends to facilitate the usability of the solution, offering support for implementation and maintenance.

2 - Focus on sales

The first advantage directly impacts this one. Since your team does not have to worry about the development of the technology, there is more room to focus only on sales.

3 - Pricing Autonomy

This is one of the main advantages of White label. The owner of the technology does not impose the resale value and your company can acquire the solution for a low cost and resell it with an excellent profit margin.

4 - Increased willingness to purchase your product

The public is not always willing to buy your core offering. For example, your company's main solution is management software, but the customer you want to reach has not gone through the digital transformation. Therefore, they may end up resisting the purchase of your service. With a White Label digital solution, your company can offer to cross-sell: management software + website for digital presence. Thus, the customer gets more solutions from a single provider and your company ensures an increase in the average ticket.

5 - Scalability and revenue predictability

With White Label, your business can meet the growing demands without having to make large investments in new technologies. In addition, your company can create recurring plans, where the customer pays on a monthly subscription basis.

6 - Creation of value perception

With the "plus" of the White Label solution, your company strengthens the bond with the client, since he/she has access to more than one solution in one place. In other words, besides expanding the service portfolio of your business, you also add value by offering additional solutions that solve the customer's pains.

7 - Fast and low-cost innovation

We already said it: with White Label, it is not your company that has to develop the technology. But you gain quick access to easy-to-implement innovations. In other words, it is the best way to innovate in your company.

8 - Low application risk

Continuing with the ownership of the technology, your company has experienced and knowledgeable service professionals to implement the solution, with less chance of technical problems and more support. Thus, your company does not need to hire a team to meet technical demands.

The advantages are very good, aren't they? And they are many more concerning the disadvantage of not having any influence on the technological development of the service.

To choose the ideal solution, think about your interpreting agency, your needs, your market, and also the characteristics and requirements of your clients. Understand what options are on the market to offer a unique and complete experience for those people.

At Speak Now Video we have the best withe label service for your interpreting agency, if you have questions and want to know more about our withe label service contact us.