What is white label hosting?
White label hosting is a franchise agreement to use another company’s products and services as your brand. The bidder is usually a solid and established company, while the bidder is a small company with a limited capital base.
Let’s use this example: Company A is a multi-million dollar web hosting company and Company B is a small home-based web business. Company B wants to create a lucrative business on the Internet, but does not have a large investment budget, but is partnering with Company A to use its products and web services. Company A agrees by charging an annual or monthly subscription fee and provides administrative support to Company B.
This trade agreement is mutually beneficial for both companies, even if one is fully established. Then the question is asked: “How effective is this for the business world?” Research has shown that many small internet marketing businesses today are moving towards white label web hosting to get their slice of the multi-million dollar internet marketing pie.
Why White Label?
While the white label uses a company’s trade name to market products and services that belong to another official company, it creates opportunities for both markets. Corporate businesses allow small businesses to make a profit using their already established products and services and this helps large corporations expand their business to other areas in small pockets.
White labeling also allows entrepreneurs to put brand names on the items they sell, giving the company all credit and commissions from sales without revealing the supplier’s brand name.
How do large companies generally benefit?
Corporate companies benefit by charging a reseller fee or a license such as a franchise agreement. This is generally affordable as these funds provide customer support, business processing, and other administrative services for the subscriber.
Additionally, awarding white label contracts reduces pressure from larger companies when it comes to retail marketing. White label web hosting could be similar to wholesaling. As wholesale suppliers, small businesses can re-market their products and services to retail customers.
Benefits for the web hosting reseller
Finally, thousands of resellers today are benefiting substantially from establishing a web hosting retail business. They have fewer overhead, inventory, staffing, and administrative functions to handle. The biggest benefit for these small businesses is the fact that they have BPO (Business Process Outsourcing) that takes care of their clients’ technical problems.
If you want to be a white label web hosting reseller, a lucrative opportunity awaits you. Join hundreds of digital marketers incorporating their businesses with web hosting and domain name services for their clients.
