.jpg?width=45&name=1621426681866%20(1).jpg){kind=small}
SaaS companies always look for new ways to grow business and offer value. One strategy that can achieve both goals is white labeling new solutions.
What is White Labeling in the World of SaaS?
White labeling is a term used to describe the practice of rebranding a product or service produced by one company as if another company created it. In the world of SaaS, white labeling refers to using another company's software platform and rebranding it as your own, often with the intention of reselling it to your customers.
There are several benefits to white labeling in the SaaS industry. White labeling allows companies to offer a broader range of products and services to their customers without investing in developing and maintaining those products themselves. This can be especially useful for smaller companies or startups needing more resources or expertise to create and maintain their software platforms.
Additionally, white labeling can help companies differentiate themselves from competition and efficiently offer new proprietary solutions others don’t have. This can be especially appealing to customers suffering from app fatigue.
Simply put, white labeling can be a useful strategy for companies looking to offer a wider range of products and services to their customers without having to invest in the development and maintenance of those products themselves.
Ten Reasons SaaS Companies White Label New Solutions
- Provide More Solutions for Customers
- Present New Solutions as Proprietary
- Save Time and Money
- Expand Into New Markets
- Test New Solutions
- Bolster Customer Relationships
- Strengthen Your Brand
- Support New Features
- Stay Competitive
Provide More Solutions for Customers
White labeling allows you to quickly and efficiently offer a wider range of solutions to your customers. By white labeling a product or service, you can add it to your core competencies without investing in development or maintenance. Offering more solutions to your customers helps retain current customers and attract new business.
Present New Solutions As Proprietary
White labeling allows you to brand new solutions as your own. When you white label a product or service, you apply your branding and design. This creates a consistent and cohesive customer experience and differentiates your brand from competitors.
White Labeling Saves Time and Money
Developing new solutions from scratch can be time-consuming and expensive. Estimates place the range for developing a market viable product (MVP) between $50-250k. However, 70% of software development costs occur after implementation, and 53% of projects cost 189% more than the original estimates. That’s not accounting for upkeep costs, either.
Timewise, it takes an average of 2-10 months to get new solutions up and running, which doesn’t account for potentially hiring and onboarding new talent to develop the new solution.
White labeling allows you to leverage another company's work, saving you significant time and resources.
Expand Into New Markets
If you’re looking to expand into a new market, white labeling can be a cost-effective way. Partnering with a SaaS company that’s already a leader in their market provides you with insights and tips for selling and marketing your new solution, as well as how to meet the needs of the new market’s customers.
Here at HiringThing, we private label (a similar modality to white labeling, which we’ll touch upon at the end of this post) an applicant tracking system (ATS)—hiring software used to streamline, automate, and optimize recruiting. We work closely with any company that private labels our ATS to ensure they become experts in marketing and selling recruiting software to their respective industries. We will strategize with partners looking to break into new markets.
A Cost-Effective Way to Test New Products or Services
As we established in the section above, developing new products or services can be costly and time-consuming. White labeling allows you to try new products or services without committing significant resources to their development or maintenance. It can be a valuable way to test the waters of a new product or market with the knowledge that you can easily and cost-effectively scale back if it’s not working out.
Bolster Customer Relationships
Offering a more comprehensive range of solutions to your customers can improve the value of your offerings and strengthen your relationships with them. It shows customers that you care about helping them succeed through new features and enhancements and provides additional reasons to reach out to customers in relationship-building ways.
We’ve seen SaaS companies use white labeling to help fulfill customer requirements. Imagine how great it would be for customer relationships if you could quickly add proprietary solutions they ask for to your suite of products!
Build Strong Partnerships
White labeling new solutions helps organizations build meaningful partnerships with other companies. Working together to offer customer solutions creates mutually beneficial relationships that help both companies grow.
Additionally, most white label developers will also have their networks of business and integration partners you may be able to add to your network.
Strengthen Your Brand
White labeling allows you to offer solutions branded as your own, which can help build and strengthen your brand, and help further cement you as an innovator in your industry.
Support New Features
When you private label a new solution, you don’t have to worry about overextending your team to support the new feature. With a competitive private label developer, you’ll get the expertise and support of their teams, from engineering to product to customer service or marketing.
Stay Competitive
While it may appear last on this list, staying competitive is probably the number one reason SaaS companies should white label new solutions (it also appears last because it encapsulates the previous nine reasons).
The SaaS market is constantly evolving—Gartner reports that 80% of tech organizations are moving quickly on new development initiatives designed to make them more innovative, resilient, and competitive. White labeling allows you to quickly and easily adapt to recent trends and changes in customer demand. By offering a wider range of prescient products, services, and solutions, your SaaS company can stay competitive and ensure you remain relevant and valuable to current and potential customers.
Do you need a specific new solution that will make your SaaS more competitive? We’ve got an idea!
White Labeling is a Valuable SaaS Strategy
White labeling new solutions can be a valuable strategy for SaaS companies looking to grow their businesses, expand their offerings, and stay competitive in an ever-changing market. It allows you to offer your customers a wider range of solutions and customize the offerings to fit your brand while saving time and money. By considering white labeling as part of your growth strategy, you can position your SaaS organization for success.
Private Labeling Takes White Labeling a Step Further
As mentioned above, we here at HiringThing are the creators of an applicant tracking system (ATS)—hiring software used to automate, streamline, and optimize recruiting—that many SaaS companies private label to expand their solutions, drive revenue, and stay competitive.
Like white labeling, private labeling is a modality for SaaS companies looking to outsource new tech solutions. While the two modalities are often used interchangeably (and white labeling is more prominent), there’s a fundamental difference. Private labeling takes things further than white labeling by offering customizations to ensure the platform meets business needs. In the case of our ATS, for example, workflows, integration add-ons, and functionalities can be customized so that our partners can make the ATS their own.
You can think of private labeling as a form of white labeling—all private label developers can be considered white label, but not all white labels can be considered private label.
Regardless of the modality you choose, white and private labeling tech solutions is something we’re incredibly passionate about here at HiringThing. While they are great ways to make your SaaS more competitive, finding the right partner is key. That’s why we created The Ultimate Guide to Creating a White Label SaaS Partnership (which is 100% applicable to white label partnerships too).
Related Resources
- Outsource Your Next Technology Solution
- How to Delight SaaS Users
- Create a Competitive Edge for SaaS Companies With This Innovative Move
- The Difference Between a Private Label and White Label ATS
About HiringThing
HiringThing is a modern recruiting and employee onboarding platform as a service that creates seamless talent experiences. Our white label solutions and open API enable technology and service providers to offer hiring and onboarding to their clients. Approachable and adaptable, the platform empowers anyone, anywhere to build their dream team.
