Many businesses utilize white label app solutions to get branded software without engaging in the complexities of custom app development. White label apps help small businesses level the playing field and compete with businesses with their own app development team.
This post will explain what a white label app is, why it is beneficial, and some of its common challenges.
Whether you are considering investing in a white label mobile app or want to know more about what white label products could do for your company, this post will tell you everything you need to know about white labeling.
What are White Label Apps?
A white label app is generic software businesses purchase and then personalize to fit their brand identity. Companies that develop white label apps tend to create broad solutions for entire industries.
For example, a white label mobile app developer might create a generic app framework for a patient booking application.
Since patient/client booking apps tend to require the same features, interested businesses or practices can buy a generic white label app and customize the branding instead of building their own app and investing in custom mobile app development.
In addition, white label mobile app developers can sell the same product to multiple businesses and generate additional revenue.
Some businesses might even consider purchasing white label apps with the express intention of selling them to other interested companies.
White label apps are generally sold in two distinct ways. The most common way white label services sell these mobile apps is with frontend and backend code. Businesses that purchase these mobile apps have limited customization or scalability options.
White label service providers also offer products that only have backend code. Businesses that purchase this product will have to undergo custom app development for the frontend code.
While the latter option is not fully white label, it does offer organizations greater control over User Interface design.
The Benefits of White Label Apps
There are several reasons a business might purchase a white label mobile app instead of investing in custom development. The top benefits of white label mobile apps and software are:
- Cost
- Ready to launch
- Maintenance responsibilities
Cost
The main reason companies choose white label mobile apps or software is cost efficiency. Purchasing a white label mobile app is much cheaper than custom development.
Building mobile applications requires time and money. Your business will need to hire an in-house team of developers, designers, product managers, QA testers, etc.
Your company could also outsource development to a mobile app development business. However, this approach still requires market research, design, development, and testing, which is costly.
A white label solution is the most cost-effective option for businesses with limited resources. Instead of paying for the entire development process, your company only has to pay a small fraction of this cost.
Ready to Launch
Most businesses choose white label apps for cost savings, but a white labeled app saves your business considerable time too.
The development process often takes months or even a year to complete. However, businesses that purchase a white label app can quickly launch their product after a short customization period.
Sometimes in business, the first mover gains an insurmountable market advantage. In addition to financial savings, business owners that want to launch quickly benefit greatly from white label apps.
Maintenance Responsibilities
Generally, white label apps are supported and maintained by the company that sold them. This is a significant advantage for your business. You won’t have to worry about fixing errors or ensuring a regular maintenance schedule is kept.
Typically, if you find a bug or glitch in the software, all you need to do is notify the provider, and they will address the problem for your business.
In addition to the time and financial resources it takes to build custom software, your business will also be responsible for maintaining it. Maintenance is a necessary and ongoing part of app development.
As a result, your organization will continue to spend time and money for as long as the software is in use.
The Challenges of the White Label Approach
Despite the significant benefits of white label apps, organizations continue to invest in custom app development for a few important reasons, including:
- Limited customization
- Limited access to source code
- Difficult to scale
Limited Customization
The most significant challenge businesses face with white label products is limited customization. It can be difficult to express your company’s brand identity when its customization options are so limited.
In addition, your business won’t be able to add features not already present in the app. These solutions are developed to be widely applicable to an entire industry or use case. As a result, your business might not be able to get every feature that it wants.
Limited Access to Source Code
Your business will have little to no access to the source code of its white label application. The issue here is that your business cannot be certain how strong the source code is or how safe its user data is.
For one, you can’t be certain that your app’s user data is not being collected and sold to third parties. Plus, if there is a security breach or loss of customer data, it will be damaging to your reputation, but there will be nothing your business can do about it.
Difficult to Scale
It is difficult to anticipate when user demand will soar. White label products offer little scalability. You can contact the provider with change requests, but they might not be able to accommodate them.
If you need to scale quickly, custom development will likely be the better option for your business.
Final Thoughts
There are pros and cons to white label software. Typically, these solutions are best suited for businesses that cannot afford custom app development. However, you might find that this approach is also beneficial to your business for other reasons, such as time to market.
If you want to learn more about app development, reach out to an experienced app development partner like Koombea.
