There is a global epidemic happening right now! Where unsuspecting entrepreneurs/business owners are being taken advantage of in a huge way. Imagine being sold a service, only to find out that the service you are paying for was relabeled and sold to you for almost double the cost. Crazy right? Has to be illegal right? Well, you would be surprised how often this happens.
Companies these days are more than willing to completely sell out their brand to a competitor. Doing so allows the same company to not have to worry about competition. Imagine creating a product and having a handful of people sell it for you without having to pay them! That’s the idea behind the white label business model, and it is spreading fast. Last year only about 20% of the major players in the tech world offered a “white label” option. This year in 2019 that number rose to over 57%! It’s a genius way for a company to scale!
With all that said this epidemic creates a huge bruise on the tech echo system. Because of the lack of necessity for rival companies to create similar products, we will more than likely see our future market become stale, with no real innovation. To make it even worse people who shouldn’t deserve the title will be credited with being the ones who are “innovative”. This will lead to people putting their trust into someone who is not deserving!
What can you do as a business owner to ensure that you are not being sold a relabeled product? This can be difficult because it required you to do your research, review source code and reach out to the original providers to get pricing on the service. Some white label products end up costing the exact same, most however are more than double the cost. So for most, it would be worth the work.
Are you worried that your systems might be white-labeled?
Let us know we would be happy to review it for you.