Do you have a great idea for a software application, or does your company need a custom tool to smooth out their workflow? If you’re looking for ways to bring your ideas and needs to life, you’re in the right place. According to data sourced by TechCrunch, in 2023, consumers spent $171 billion on mobile apps. Apps can be extremely profitable with the right idea and a hungry market.
Whether you’re looking to build an application for mobile, the web, or both, white label software development services might be a good solution. If you go the traditional route, you’d have to hire a software development company to build your application from scratch, which sounds great until you get the quote. It’s worth the investment, but that doesn’t matter if you don’t have the budget.
White label development is usually more affordable than traditional development, and in this article, we’ll take a deep dive into the pros and cons to help you decide which route to take.
What is white label software development?
White labeling is when a company creates a product and sells it to another company, who then places their brand on the product to sell to consumers. For example, you’ve probably noticed that most grocery stores sell products made by “house brands” for a cheaper price that sit next to the brand names on the shelves. The grocery store buys these items from a third party and puts their brand on it before it goes on the shelves.
Where applications are concerned, here’s an example of what white labeling looks like.
Say you own a mobile mechanic service and want to offer a mobile app to your customers to schedule appointments and get updates easily. You’d find a white label software development company that has already built a basic mobile app for appointment scheduling and then purchase the rights to the application.
Then, you’d have that company customize your specific instance of the app with your branding so that the user experience reflects your brand at all times, giving the appearance that you developed the application. You’d also have the opportunity to request changes, modifications, and further customizations. This is the fastest way to support your customers or clients with minimal investment.
Some of the most popular white label applications include:
- Social media management apps
- Food delivery apps
- Online course applications
- CRM software
- Coupon and discount applications
- Appointment scheduling apps
- SEO management apps
- Email marketing software
Although white label software development services are an excellent way to get an app quickly, you need to consider the pros and cons to make sure it’s the right choice. Let’s dive into the advantages and disadvantages.
Pro: Affordability
White label software development will significantly reduce your upfront costs when compared to traditional custom application development. Getting a custom app made requires a lot of coordination between the various teams you need to hire, like designers, developers, QA testers, and more. It’s not easy or cheap to hire a full-time team to develop an application, and there’s no guarantee the different teams you hire will be able to work together smoothly.
Developing an app from scratch takes far more work, which is why it costs more. Although developers generally have a wide range of frameworks to start with, there’s still quite a bit involved in developing each application. Frameworks eliminate some repetitive coding, but they don’t make an application ready for use. It’s just a foundation designed to save the developer a little bit of time on the back end.
White label development, on the other hand, begins with more than just a framework – the developers already have fully functioning applications with all the basic features ready to be branded and customized to your liking. The majority of the work is already done, which eliminates most of the cost.
With a more affordable app, you can allocate the rest of your budget more efficiently, whether you need to spend more on marketing or put it into SEO.
Con: Limited customization options
Although white label applications are designed to scale with your business and you can get customizations, there are limits. These apps are built to accommodate basic needs, and if you have complex requirements, it may not work. For example, if you want your mobile app to deliver a specific user experience that would require redesigning the entire user interface, white label software isn’t a good fit.
For example, you can’t just replicate an existing popular website and expect it to be successful. You need to offer unique value, either through the application’s features, or by connecting services to the use of the application in an innovative way.
Pro: Speedy delivery
The sooner you launch your app, the faster you’ll start generating revenue. When getting your app to market fast is a priority, white label development is a great option. Even if you plan on developing a fully customized app in the future, you can get started quicker with a white label app.
You’ll get an app with pre-built features so you can launch quickly. If you’re on a strict deadline or you’re trying to meet a need that is time-sensitive, white label development will help.
Most of the time you’ll spend working with developers will be to discuss customizations that better fit your needs. The best part is you can introduce additional features incrementally if you need to launch right away. For example, you can launch your app right now with basic features and three months from now, update your app with new features.
Con: A generic look and feel
Even though you can brand your white label applications with your company logo, colors, and more, there’s a good chance it will still project a generic aesthetic. If you’re trying to stand out in your market and some of your competitors are using the same white label app, this might be a deal breaker. However, with a strong marketing campaign, you can overcome this obstacle.
Good, effective marketing will sell even the most boring product. If you can market your services and app in a way that connects deeply with your market, it won’t matter how many other competitors are using the same application. Your app is a tool and not the product you’re selling. Even if people need to pay for your app, that’s not what you’re selling. You’re selling a solution, a dream, a goal, etc.
Pro: Maintenance and updates are handled
Applications need to be maintained on a regular basis to ensure bugs get fixed and security vulnerabilities get patched. If you hire a traditional software development company to create your application from scratch, they’re not going to maintain it for you. You will need to hire your own team of developers for that, which will be expensive.
When you use white label development services, they’ll maintain your application for you and implement all updates and security fixes. There will likely be a fee for this, but it’s far less than what you’d pay an in-house developer.
Con: You can’t always make your own customizations
With traditional software development, you can hire any developer at any time to make changes and customizations to your application. With white label services, you have to rely on the development company for most changes because they won’t typically give you access to all of the source code. If you don’t like your provider, you won’t be able to switch development companies without getting an entirely new app.
Pro: Less risk
Since many companies use the same white label applications, it’s easy to see when an app has a proven track record. If it’s being used by a handful of companies, you can see how it’s performing in the real world in terms of market acceptance and reliability. Knowing the market has already validated the app removes a significant amount of risk and proves that your app can be successful. Granted, you’ll still need to have a good marketing strategy in place to see results.
Con: You need an existing brand to be successful
If you don’t already have a brand or much of a customer base, a white label application won’t necessarily be the solution you’re looking for. It all depends on your needs and plans to grow your business. For example, if you’re just getting your business off the ground, a white label app can be an amazing tool to help you get started. However, if people don’t already know your brand, they’re not going to download your application without a good reason.
If you aren’t already established in your industry, you’ll need to start building your brand and reputation to get people interested in your app. To generate sales through your app, you’ll need an existing customer base.
Pro: Scalability
White label applications start out simple, but they are designed to scale as your business grows. The developers anticipate the need for new features and functions and build their applications in a way that supports a good amount of additions and alterations without having to rebuild the app.
If you take the traditional route and have a custom app developed from scratch, you may not be able to scale it easily or affordably. Certain changes may require a redesign and/or redevelopment.
Save some resources with white label development
Outsourcing your application development to a white label team allows you to invest more of your time and money in crucial aspects of your business, like marketing and sales. Whether you’re focused on optimizing your company’s website for search, running PPC ads, or strengthening your customer service, a white label software development team will allow you to use your resources to grow your business instead of having to manage the technical aspect of application development.
Build a white label application
Choosing a white label software development company is a cost-effective way to get your app built quickly and efficiently. White label solutions allow you to leverage proven platforms that have a track record of market acceptance and reliability.
