Why we launched a white label hotel solution for others to sell and start their own business

Since leaving the hotel business to start a hotel cloud software company it’s been a passion to see other people succeed also. It’s probably my hospitality side coming into play!

Over the last year I have had many request from people to be a reseller or if they could white label my solution to sell as their own. Most advice on the Internet is that to white label your product is a bad idea for a few reasons:

1. You will create more competitors in your industry
2. You will lose brand equity
3. Investors and VC’s wont like this in future rounds

So why did I go against popular wisdom and start a whitelabel programme?

First I will address the earlier points against the decisions:

1. Competition is fierce in this industry already, having white labels will be a net benefit overall
2. I don’t understand the brand point, we are in a b2b software business and also a startup.
3. I don’t really want VC money and Angels are quite open to the idea

More People using the product

Getting more users is the main priority for me, if it means a small amount of money because someone started their own business over in North Thailand then that is fine with me. Actually it’s amazing!

Small Case Study

Jen has been selling our solution over in Thailand for the last 4 months. She has sold 18 accounts so far and she provides support for her clients.

http://thebookingfactory.com/white-label.html

She has sold at quite a low value per client as they are small hostels and B&B’s. But at $700 monthly revenue it’s pretty good going after a few months!

If you want to play with the calculator then you can find it here: http://thebookingfactory.com/white-label.html

Why White Label and not Reseller?

White label sellers understand that this is their business and brand, if there are any support problems they must help the client and be on hand to train them. While The Booking Factory will provide full technical support, most of the work with clients is training and support.

A reseller isn’t interested in The Booking Factory, they just want to sell to anyone who will take the product and take the monthly affiliate fee. This might be ok in UK but in foreign countries there needs to be local support services in their timezone and people who understand how things work in that region.

Can anyone start their own business as a hotel tech company?

YES! Someone mentioned that we should not allow white label accounts to sell in our home country (UK). And that white label accounts should have their own territory. Currently there are no restrictions so please get in touch if you know the hospitality field and tech savvy and wish to start your own business wherever you may be.