Creating a startup from White Label Solution

Bertha Kgokong
7 replies
Hi guys, my name is Bertha the founder of Skhokho - Business Management Software. I started this project last year and have been building it up for some time now, preparing to launch soon on PH. One of the request we have been getting is people asking if we can white-label the software for them, there is obviously an opportunity cost there where you create your own competition by licencing four software, but at the same time - we are flexible and open and have worked on a pricing model where we also benefit from the companies who licence our software. Eventually we decided to launch this feature here - https://skhokho.io/white-label-s... My question is, is white-labelling really an attractive option to founders? Would you use a licensed software, or rather build your own?

Replies

Daniel Engels
It depends on your market. If you have a ground-breaking product facing weak competition, you might want to grow on your own. If there is a strong competition and acquisition cost is high, white-labelling is an interesting option. The main problem: it's not that easy to find a reliable reseller ready to invest in the software he doesn't control!
Fares
@daniel_engels Good point of view, very interesting
Bertha Kgokong
@daniel_engels Ok noted. The market is high competition in a way, not an innovative product --- but a different way of positioning it to the market. The market is also significant, there is always a share available for the taking if you can do good marketing.
Paul VanZandt
We offer a white-label service for our product and I think it can be really effective when targeted correctly. I think that it really depends on how niche your product is. If a ton of people can use it, white-label might be a good option. If it's more vertical, it's probably best to focus on independent growth.
Fabian Maume
The white label works well if your product works best when combined with some consulting service. Consulting agencies love white label solutions.