White Label Vs Private Label Reseller Programs

There are so many reseller programs now available particularly for online businesses such as web hosting and text marketing. These are the types of businesses that are easily adaptable to become available for resellers. Many resellers will do so through white labeling or private label reselling. This is a good way to start your own online business or to add a service to your already existing online enterprise. Many who are knew to this type of online enterprise may not understand the difference between white label vs. private label reseller programs. As previously mentioned, there is little difference between the meaning of white label vs private label when it comes to reseller programs. Both terms are used to describe the same type of reseller marketing.

Definition of white label marketing:

A product or service where the provider of the service purchases a supported product from another source and then applies its own name, brand or identity to the service and sells it as its own product. Through white labeling, the customer should assume the seller is selling its own product.

Definition of private label marketing:

Similarly to white label, a private label product is one that is manufactures and provided by one company but is sold under the name or identity of a different company. Private label can occur in a variety of products and services including online reseller programs as well as foods, cosmetics, and web hosting. Most of the time the products offered under private label are offered as the lower cost alternative products compared to the “name brand” of the product or service. Businesses of all sizes offer various types of private label marketing.

As you can see, both white label and private label can be used interchangeable with reseller programs. Most reseller programs under white labeling often find it is far more lucrative business than what is sold through the original business. With consumers always looking for ways to save money while shopping, they often allocate their shopping dollars to generic store-name brands, or will go with the reseller company that can offer the best and most affordable deal. This is standard practice for most consumers, which is why reselling can be a great way to make money online. Most consumers also know and understand that name brand services are not necessarily any better than what is offered by the generic or business label that is private. Because they know this, those who choose to become a reseller can easily undercut the prices of other providers and still make a profit by making the same quality of service cost less, and therefore become more appealing to potential customers.

The difference:

While it may seem that white label and private label are the same thing because they have such a similar meaning, the terms cannot be used interchangeably. The difference between these two types of marketing is that with private labeling, it is a practice that is generally followed in stores. The product is generally manufactured by the same manufacturer that creates the same product for the name brand also sold in stores. With white labeling, it is traditionally used in reference to a service particularly sold online. With white label the logo and name are on the label, the location where they are available for purchase is also on the label as well as the price that the reseller sets. However, with private label, the logo and name are on the label. The locations at which the products are available for purchase is also listed along with the price and what is contained in the box or packaging.

Courtesy: http://EzineArticles.com/6353911