What is white label hosting?
White label hosting is a franchise agreement to use another company’s products and services as your brand. The offeror is usually a solid, established company, while the recipient is a small business with a limited revenue pad.
Let’s use this example: Company A is a multi-million dollar web hosting company and Company B is a small home-based web company. Company B wants to build a productive Internet business, but does not have a large investment budget, but partners with Company A to use their web products and services. Company A agrees to charge an annual or monthly subscription fee and provides bureaucratic support to company B.
This business arrangement is mutually philanthropic for both companies, even if one is fully established. The question then becomes, “How effective is this for the business world?” Research has shown that many small Internet marketing companies today are moving around white label web hosting to get their share of the multi-billion dollar Internet marketing pie.
Why White Label?
If white labeling properly uses a company’s trade name to market products and services that belong to another official company, it creates opportunities for both markets. Corporate companies allow small businesses to benefit by using their established products and services and this helps large corporations expand their business into other areas in smaller pockets.
White labeling also allows entrepreneurs to place brand names on the items they market, giving the company full credit and commissions on sales without revealing the supplier’s brand name.
How do large companies benefit in the military?
Corporate companies benefit by charging a reseller fee or abuse as a franchise agreement. This is often affordable as these funds provide customer service, business processing and other administrative services for the subscriber.
On the other hand, awarding white label contracts takes the pressure off larger companies in terms of retail marketing. White label web hosting could be similar to long term retail settlement. As wholesale providers, small businesses can return to marketing their products and services to retail customers.
Benefits for the web hosting reseller
Finally, thousands of resellers today are benefiting substantially by establishing a retail web hosting business. They have less overhead, inventory, personnel and administrative functions to manage. The long-lived benefit for these small businesses is the fact that they have BPOs (Business Process Outsourcing) to take care of their customers’ technical problems.
If you want to be a white label web hosting reseller, a lucrative opportunity awaits you. Join hundreds of digital marketers who incorporate their businesses with web hosting and domain name services for their clients.
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