What happens if a company wants to sell a product or a service; however, the company either does not want to create the product, or they lack the funding and qualified staff to provide the service? The answer lies within two key terms: white label and private label.
Exactly what do white label and private label mean? Essentially, the two terms share the same meaning. White label and private label refer to when a provider of a product or service purchases the exact same product or service from another company and sells it under their own brand. This brings to mind the famous line from “The Wizard of Oz,” “do not talk to the man behind the curtain.” The company providing the product or services remains in the shadows. It goes undetected by the main companys clients, while the main company continues to be in the forefront.
Take for example an seo or search engine optimization company. An SEO company, (which for clarification purposes, will be referred to as company A) may lack the trained staff it needs to provide the services requested by their clients. If that is the case, company a may seek out another seo company (which will be referred to as company b) to back them up and give them the staff and services that they need. Company A markets the services as their own and Company B assists them without company As clients ever knowing. Company A will then be referred to as a white label seo or a private label seo. They provide services to their clients without actually doing the work themselves.
When it comes down to it, white label and private label companies have better business sense than one might think. Initially, it would seem that they would not be able to compete in the market today, if they did not have the desire nor the ability to provide their clients with the products and services that they demand. However, they have the ideal set up being white label or private label. They look for the products and or services that they need, purchase them and market them as their own. The end result is a nice profit with very little work put into it on their part. That is in my opinion, one word, genius.