It is a very common question in the minds of new entrepreneurs. Should I go for white-labelling or a non-branded software for my local business? Being new to entrepreneurship, it is quite okay to be confused.
Both these business models serve similar purposes for retailers. Yet, there are many differences between white labelled and customised apps. It is highly advisable to be aware of these differences as a local business owner.
In the article, we will find out about these key differences between white-label apps and non-branded apps, and which model will suit your local business the best.
What is White Labelling?
So, what is the meaning of white labelling in business terms? The term white labelling emerged from the music industry and it is used to refer to various generic products and services created by the makers for sales through other retailers.
These other resellers can then re-package these products, place a brand on them and sell them as something of their own. Similarly white label tech products mean you can buy unbranded platforms and other solutions to customise them according to your requirements and use them under your brand name.
A white-label example would be of ghostwriting. It means a business can develop an app or a website for another business to buy it. This means the manufacturing company developers cannot associate their brand with the app they have created. However, the business that has purchased this app gets full freedom of using its logo, identity, brand, etc.
White-label mobile apps vs customised non-branded apps
The white label mobile app is a universal application and it can be easily downloaded onto your device. Any company can rebrand the app according to its needs. These white-label apps are developed by third parties and come with general and basic app features compatible with most devices.
The business will then buy this white-label app. After this, the app’s features are personalized or branded according to the requirements and specifications. The white-label apps with low-code or no-code platforms are the exact opposite of developing a mobile app of your own.
You can get some low-coding or no-coding development platforms which lets the users develop apps for their business without taking help from developers and coders or other kinds of specialists. It makes things easy to build large, complex, and highly scalable applications without the code for white labels.
Keep in mind that white-label apps are far more cost-effective than non-branded customised apps. The costs involved in a mobile app depend on your budget, the features you desire, and the expertise of the developing team.
However, as you may expect, a more complex app is likely to cost you far more than a conventional mobile app solution having a standard set of features. These customisations can cost you a great deal of money and it is also expensive to maintain them. But it is also a fact that you will never entirely own a white-label app.
Benefits of using white-label apps
It is always advisable to add resalable and re-brandable digital marketing products and services to the main business strategy. It offers a wide range of advantages for your business. Here are some of the benefits of using white-label apps.
- Scalability: Having scalability has always been a beneficial advantage for any business. The white-label solutions allow you to grow your business in several ways that are both safe and fast.
- Saving in terms of resources: You can get an opportunity to reduce the overheads and resource costs and raise the revenue potential. The white-label solutions can decrease your expenses in several ways. They are better for product development or fulfilment as they are cost-effective.
- Growth: The white-label mobile apps help increase the size of your offerings. These apps permit you to move from being an entrepreneur to an agency within a short period. Just add new goods and services to the core offerings through the white label and private label apps.
- Competitiveness: Never forget that it is ultimately your app that will make you stand out from the competition. How you can customise it has limitless opportunities. These white-label options are considered to be a great way of expanding your brand and developing a solid reputation. You can take your services and raise the revenue to a newer height.
Cons of using white label apps and advantages of a customised non-branded app
Despite all the advantages involved in using white-label apps, there are several local businesses out there that keep on investing in non-branded customised apps. The reason for this is that there are some major disadvantages involved in using white-label apps.
Little scope for customisation: One of the biggest disadvantages in the development of white-label apps is that you do not have much scope for customisation. As described earlier, these white-label apps are developed by various businesses as generic solutions for their businesses. So, it is usual to add just the normal features in this app that are relevant to a niche.
While using customised apps, on the other hand, you can take into consideration some of your unique business needs. You may include features that will address the pain points of the target audience. Getting even the smaller features has a big role here. The customised app is more likely to satisfy the requirements of your clients and provide a better retention rate.
- Overlap in brand identity: It is a fact that using a white-label app lets you to create your own brand identity and add these unique elements to the UX. However, all the businesses that will buy this app are going to get the same placements for their brands. In the end, the app design and UX will not be able to distinguish between your brand and the other brands available in the industry. In the case of customised apps, you are allowed to develop the whole app UX that will match up with the existing brand tone. In case you have a company with a quirky brand image, you may incorporate it in the customised app. Similarly, in case your brand is positioned as a high-tech brand it will reflect in the app UI or UX.
- Ownership of the source code and data security: Many companies that develop white-label apps do not provide access to the source code of the app or the server. Therefore, there is no way of knowing whether the source code is robust enough or how secure the user data will remain on these servers. In case there is any breach in data, the reputation of the business can get damaged beyond repair. Also, you have no way of knowing whether your app data is getting exported or sold to third parties. But when you have your customised app there are no such risks. You have exclusive rights to the app data. Even when you have recruited the services of an app development company, they are going to transfer the IP rights over to you. This will allow you to confirm the safety of the server. You will also have full ownership of the source code as you are developing your app.
So, ultimately what do you do? Should you get a white-label app for your business or develop a custom app? It depends on your business requirements and how significant your brand image is to you. It also depends on the constraints of the budget.
It is a fact that white-label apps have lower development costs than compared to custom apps. But a more accurate comparison will be with ROI-based figures. If you are looking to develop a custom app for your local business, for best android customisation, get in touch with the pros at Jungleworks for assistance.
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