Glossary · Product
What is White Label?
Definition
White label is a product or service made by one company that other businesses rebrand and sell as their own.
Why it matters
The manufacturer or provider makes a generic product, and you add your name, logo, and packaging. The same item may be sold by many other brands, so differentiation comes from your marketing and service.
An SEO freelancer might outsource reporting to a white-label agency that charges $400 a month per client, then sell the package to a local dentist for $900. Her gross margin is $500, or 56 percent, without hiring staff. Ten such clients would yield $5,000 monthly gross profit.
Check the provider's quality, because your reputation rides on it. Review the agreement for ownership and confidentiality terms, and note that rules vary, so ask an attorney if the stakes are high.
Common mistakes
- !Relying on a supplier whose quality you have never tested.
- !Assuming exclusivity when the same product is sold under other brands.
Frequently asked questions
What is White Label?
White label is a product or service made by one company that other businesses rebrand and sell as their own.
What mistakes do beginners make with White Label?
Relying on a supplier whose quality you have never tested. Assuming exclusivity when the same product is sold under other brands.
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