October 31, 2019 | Last updated on April 11, 2024

Offset Development Costs by White-Labeling Your Software Solution

Written by Marc Alringer

You have an idea for a digital application that you think will support and improve your business.  When you do your research on what it will take to design and develop this product, the cost estimate is much higher than you anticipated and you’re unsure if you should proceed with the investment. You deliberate with your team and try to find alternative options, but to no avail. What do you do?

White-labeling your software is an effective solution to offset your software development costs.  White-labeling will save other businesses the time and money required to build the application, and if they can benefit from using the software solution, they may very well be interested in partnering with you.  White-labeling is a popular business model that many businesses follow in a variety of industries.  

Why You Should Consider Using White-Labeling Software

White-labeling software is an effective way to generate more revenue from products or services you have already built.  When building a new product, you must first identify if your market has an industry wide need for such products and services.

For example, in the restaurant industry, businesses may want to have a branded POS system, so a re-skinnable solution would be ideal without having to change the underlying software. Identifying these opportunities is an excellent way to offset your white-labeling software development costs. It is a win-win situation for all parties.

Using white-labeling software services allows businesses to invest in a refined product that costs a fraction of designing and developing the product from scratch.  White-labeling software solutions also increases the visibility of your brand through these new products and services, such as custom apps that could help establish your company in the marketplace.  When your customers use your white-labeled software and have a good interaction with it, it will increase your customer loyalty and could encourage them to recommend your business to others.

white-labeling software

Use White-Labeling Software to Grow Your Business

White-labeling software can become an additional revenue stream for businesses, although it might not be their core competency.  Selling your white-labeled software as a subscription model will create additional recurring monthly revenue that can support business operations. This monthly revenue can include up-sells within the product or in app-purchases, for example.  It is important to note that the white-labeling company or companies generally sign an NDA to ensure that clients can continue using its program without taking credit for it.

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White-Labeling SaaS

The white-labeled software is held on the internet and is licensed for subscription.  The reseller presents the rebranded software as her own and sells it to their clients.  This model can disrupt the typical software delivery process where users sign up for a perpetual product license.

A subscription model provides a buyer more flexibility by offering a yearly or monthly subscription option. If users want to purchase a yearly subscription, they can typically purchase it at a discounted rate. This new model gives the reseller returns every month.

How to Market Your Brand to Find Business Prospects 

To find business prospects, identify companies similar to your own that could benefit from implementing the white-labeled software.  For your business proposal, include the current problem and highlight how this new software will improve your business operations and/or drive more sales.  

White-labeling software is a cheaper and more time efficient method to adopt existing software that could benefit your company.  The benefit of white-labeling is that the product is reliable and has been developed for this specific usage. If you are still unsure about the process of white-labeling or how you could leverage it to offset your software development costs, reach out to us at hello@seamgen.com and we can explain in more detail. 

Marc Alringer
Written by
President/Founder, Seamgen
I founded Seamgen, an award winning, San Diego web and mobile app design and development agency.
Top Application Development Company San Diego and web design company in San Diego

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