White-label SaaS VS building from scratch: How to make the best decision for your business

Friday, July 21, 2023

Primary Blog/White-label SaaS VS building from scratch: How to make the best decision for your business

White-label SaaS VS building from scratch: How to make the best decision for your business

As an entrepreneur, you have a knack for creating solutions. You bridge the gap between the market and your clients and create personalized experiences for them. It’s no different when providing a software solution.

The only challenge for you is to reinvent the wheel and create everything from scratch or sit back and let a white-label provider do all the heavy lifting.

This article highlights the difference between white labeling and building software from scratch. We’ll discuss the benefits and drawbacks of each strategy and guide you on factors to consider when choosing the right white-label software.

First, let’s cover the basics.

White-label products VS In-house development products

So you’ve researched and found the one thing that distinguishes you from the other players.

But there’s an important consideration you need to make.

To build or to buy?

White-label SaaS

White-label SaaS is software you purchase from a company, rebrand and resell as your own. Most times, you’ll pay a monthly subscription fee for the product.

Becoming a white-label reseller gives you flexibility and control regarding branding, customization, and pricing.

In-house development

In-house development is building software solutions with the help of your internal development team.

Businesses are digitizing their services, and the world’s constantly hungry for innovation, meaning there’s increased demand for software.

While building products from scratch, choosing the right team and having a clear project roadmap is crucial in ensuring you meet your goals.

Making the right decision for your business

Whether you’re a new business owner or an industry veteran looking to broaden your services, you’ve probably wondered if the software solution you have in mind exists or if it meets your needs.

If you have identified the product you want to offer, your best bet is to have your in-house developers build it from scratch or purchase one from a white-label provider and customize it to your specifications.

But choosing between ready-made products and building the software yourself is challenging.

To help you decide, we have listed the pros and cons of white-label SaaS and in-house development.

Why businesses choose in-house development

To ensure the project runs smoothly, every team member has a specific role.

There are several benefits of hiring a team to build your product, and we’ve highlighted them below.

Advantages of building software in-house

In-house development gives you the luxury and freedom to take ownership of projects.

Because the team is at your disposal, it’s easier to implement changes that align with your company’s vision and business needs.

Working with an internal team gives you direct communication, eliminating the chances of errors caused by miscommunication.

When you interact with a team face-to-face, chances are there’s a higher efficiency and quicker implementation when you need any changes or updates made.

Expert team
One benefit of having an in-house development team is that you handpick developers with the specific skills and experience you want. It allows you to build a team that aligns with your product’s needs.

Although recruiting is often rigorous and time-consuming, you will gain committed members who believe in your dream.

A better understanding of the problem
When you have developers who understand your business, the problem, and the solution you’re trying to provide, it increases the chances of you succeeding. Because they are more aware, they will act fast to deliver solutions.

Disadvantages of building software in-house

Building software from scratch is expensive and can stretch your budget because it requires setting up a new department of developers. Not only will you be paying the employees but also the equipment and any necessary training.

While this may be an investment for your company, it’s more expensive than paying for a subscription model.

You need the right talent before you can work on your software solution. This means posting for positions on multiple job boards and handling several interviews.

After finding the right hires, you’ll also set goals, develop the product’s roadmap, and constantly fix and test before you can finally launch.

Leveraging White-label Technology

With white-label solutions, your shift focuses from building software to branding and drafting marketing strategies for acquiring new clients. They offer full customizations and integrations to meet your project’s demands.

Let’s look at the pros of white-label SaaS.

Pros of White-label Software

Low development costs
White-label software is a great alternative if you are just starting in your marketing agency or don’t have the resources to hire an in-house development team. Your white-label partner takes care of the development and maintenance so you can focus on marketing the solution to new and existing clients.

Enhances brand experience
White-label products allow you to add your brand name and logo to it.

For instance, if you are reselling a review management platform, you can change the user interface to match your company’s style and add integrations that your clients use. So every time they interact with the software, your brand stands out, and they associate it with your company.

Shorter time-to-market
With the availability of software solutions across various industries, businesses of all sizes can become white-label resellers.

After identifying the product you want to offer, what’s left is to pay the subscription fee, and you’re ready to earn. It allows you to launch new products and services without investing time and resources.

Target new customers
If you’re offering a white-label product, such as a review management platform from our previous example, you can reach new retailers who’ll benefit from your solution. Targeting new clients increases your brand’s reach and speeds up business growth.

When onboarding new customers, create a tailored experience by providing tutorials and resources to help them get started with your platform.

Cons of white-label SaaS

While most white-label software offers customization capabilities, not all will meet your business needs. Before settling on one, check if it allows integrations with popular tools used in your industry.

Although the cost of purchasing white-label software is lower than when building custom products, you pay for the subscription before you can resell.

The cost may be high if you choose a plan that is above your budget. Consider a subscription model that best meets your needs without compromising on quality.

How to know you need a white-label software

Choosing a white-label SaaS solution depends on your business needs, resources, and goals.

It’s easy to fall behind your competitors when finding the perfect solution for your business.

But how do you know it’s time for a white-label solution?

Here are a few reasons to convince you.

You lack in-house expertise
Creating custom solutions requires a team of developers and other experts to help build and maintain your platform. Hiring the right team is expensive, and if software solutions aren’t part of your agency’s services, your focus shifts to accommodate new business needs.

A white-label solution will help you avoid these challenges by providing a market-ready product.

Need to maintain a competitive edge
Standing out in a saturated market is challenging, especially if all your product offerings mirror those provided by competitors.

Providing unique solutions differentiates your brand from the rest. With white-label, you don’t need to hire a development team to create new solutions.

Improve customer satisfaction
Customers across various industries use white-label SaaS products because of their capabilities to meet their business needs.

If you can provide a platform that serves retailers in different industries, it helps improve customer engagement and satisfaction. With this, you create long-lasting relationships, and your clients will recommend the platform to their colleagues.

Generate income
White-labeling allows you to customize the software to meet your needs. It also means you set the product’s pricing. You can grow business revenue by selling the product to multiple clients and reaching new markets, which expands your user base.

Focus on core competencies
As a marketer, your main goal is to focus on your business and delivering marketing support to your customers.

Developing in-house software solutions shifts your focus because of the constant developments and maintenance. Opting for a white-label solution allows you to focus on your work while leaving the technical support to the software provider.

Choosing the right white-label software

White-label solutions vary depending on your industry, target audience, and business goals. The right product can significantly impact your business, so take time before deciding.

Here are a few tips to help you choose the right white-label solution for your business.

Identify the software solution and the target market
Before you choose a software solution, you’ll need to identify the software needs and the target audience.

Different businesses and industries use various tools and applications. You might choose an application that does well in one sector, only for it to be rejected in another. By identifying your target audience and their needs, you can provide solutions suitable for their industry and business needs.

Integration and customization requirements
Integration and customization are important aspects of any white-label platform.

Every business has preferred tools or platforms, such as social media channels. Your white-label solution should offer integrations with these platforms for maximum efficiency.

It should also allow you to customize the software with brand colors and logos for a seamless brand and user experience.

Test the software before launching
Testing the software before launch allows you to identify software features, capabilities, and other technical concerns. It gives you time to explore and identify areas for improvement that don’t align with your brand or may concern your client.

Offer customer support
Effective customer support influences user experience. Ensure your white-label provider offers reliable customer support channels to resolve rising issues. They can provide support through live chat, email, or phone.

When you can help solve your customers’ challenges, it increases customer satisfaction and helps in building trust.

Collaborate with clients
Collaboration with clients leads to valuable feedback and insights that you can use to improve the platform’s experience. It helps understand their frustrations, needs, and expectations, which you can use to guide your decision-making and prioritize features and updates.

Mistakes to avoid when choosing a white-label solution

While it’s easier to opt for a white-label SaaS platform than build one from scratch, you must research the products and software features provided.

We’ve highlighted a few mistakes to avoid when choosing white-label software.

Not training your employees
After identifying your software of choice, train your staff so they provide adequate support to your clients.

Selecting the wrong plan
We understand how important pricing is in business. Most white-label platforms offer different pricing models giving flexibility when selecting a subscription plan. Select a plan that meets your budget without compromising on quality and features.

Not researching the software provider
Before choosing a white-label provider, research the company by reading online reviews and testimonials and analyzing their track record to check performance.

Not testing the software
Testing the software before reselling to clients ensures you provide quality products that meet their needs and expectations.

Overlooking integration capabilities
If the platform doesn’t support integration with applications relevant to you and your industry, the chances of your customers adopting the software decrease. Choose a system that’s fully customizable for you and your customers.

Get started with Climbo white-label review management platform

Climbo is a white-label SaaS platform that helps businesses grow through authentic online reviews. It’s a review management platform that allows you to monitor and reply to reviews across various channels from one platform.

With Climbo, your agency can offer custom solutions to multiple clients.

Watch our tutorial and see how Climbo can help you boost your business’ revenue.

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Hey, I Am Giacomo Chinellato

Co-CEO Of Climbo

On this blog we share articles that could be useful for you to know more about everything around the world of software business. Happy reading!

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