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What are "Private Label Rights"

Posted on 8.07.2007
This will be a quick post as I'm sure once many of you read this, you're going to be clicking away to implement it on your own - but hey, I don't mind - that's why I'm here.

What are private label (white label) rights? Via Webopedia, "A product or service, especially common in the in the financial sector, where the provider of the service purchases a fully supported product from another source, then applies its own brand and identity to it, and sells it as its own product. The purchaser assumes the seller is selling its own product."

If you've got a product (application, online service, software, etc.) that you can (or rather are willing to) sell the rights to and allow for others to brand it with their name - do it - it has the potential to be a huge money maker. Private label, or white-label solutions as they are commonly known, are being used by thousands of savvy software vendors that see the potential of relinquishing a little bit of control for a lot more revenue.

Why offer a private label solution? For one, it creates an instant marketing program. There will always be those that are great at marketing but lousy at development. If you've got the tools, there will always be someone who wants to sell it - so why not let them? And what difference does it really make if they say it's their product or they say it's yours? Someone still has to buy the product from you, right?

You can get started offering a private label offering by stripping out any logos, branding, advertising, etc. that exists in the current application, bundling it up for distribution and approaching those that you think would be interested in, and capable of, selling your software as their own. Say for instance that you develop a time tracking software for freelancers - why not approach the thousands of weblogs that offer advice for startups?

You should find that offering a private label or white label solutions will provide you greater access into the long tail of which you otherwise would not be able to reach on a limited budget.
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