What Is A White Label SaaS? All You Need To Know

White-label SaaS platforms are an alternative if you want to sell robust software but don't want to waste efforts researching the market, developing the platform, and testing it constantly to ensure it works.

In this article, you'll learn more about white-label SaaS businesses. Keep reading!

Related: Best Businesses To Invest In: Why SaaS Acquisitions Are Worth It

What is a white-label SaaS?

A white-label SaaS works under the same principle as white-label businesses. However, SaaS is about companies buying software from the manufacturer, branding it, and later selling it to others as if it were their own solution.

A white label software allows sellers to offer software as if it were their own. By doing so, the business can reach a larger target and generate more income without investing in technology infrastructure to develop the solution in-house.

How do white-label SaaS solutions work?

A white-label SaaS is created by a SaaS provider for reselling purposes. Usually, digital marketing agencies or bigger companies buy the product. In this part, the product is branded and sold as per reseller plans. The the final customer ranges from small businesses that buy the software and creates its own brand identity, to larger companies who want to offer the service under their own brand. 

Resellers are interested in white-label SaaS products to help them expand easily and reach their sales goals by offering their target audience a new product without having to invest time and money into the development of a new solution. White-label software allows companies to enter a new market quickly.

An example of a white-label SaaS is ActiveCampaign, a marketing automation software that can be used to run email marketing campaigns. The platform is considered a white-label service because it allows customers to include their own branding and customize features according to their needs. Clients can create a custom domain, the logo, CSS/HTML, buttons, and any other reference on the platform that points out to ActiveCampaign.

Another example is Simvoly, a white-label website builder. The platform allows users to create websites, ecommerce pages, sales funnels, email marketing campaigns, and even manage leads and appointments. This white-label SaaS offers custom branding and templates, includes hosting and SSL works as a pick-and-choose platform for final users and gives you the freedom to create your pricing plans as you see fit.

Types of white-label software

When looking for options for a white-label solution, you'll come across different business types. Here are some of the most popular ones you can find on the market.

1. Marketing platforms

White-label solutions designed for marketing purposes can cover several areas: social media management platforms, mobile applications, search engine optimization tools, email marketing services, and more. Each comes with different features and several options available on the market. Additionally, users range from digital agencies to medium-sized companies.

Because of all the marketing-related tools that currently exist, it's expected that the global market of digital marketing software will reach a valuation of US $286.93 billion by 2032.

2. Ecommerce solutions

Building an ecommerce platform from scratch can require a huge investment due to the multiple features it should have. White-label SaaS solutions that are built for this purpose are robust software with a myriad of functions and any kind of features that a business owner will need to manage their online store successfully. Digital marketing agencies can also use this solution to build their client's stores.

It's expected that by the end of 2024, the global revenue from ecommerce platforms will reach US $8.14 billion.

3. Page builders

Page builders are platforms that allow their users to build websites according to their needs. The main benefit of this solution is that most of the time, users don't need to know how to code to successfully build a website. The pages can be built through a drag-and-drop feature that makes them easy to use. If not, users can choose from the existing templates that are already on the site.

White-label page builders allow users to customize the website with their logo, colors, and more brand guidelines.

Landing page web builders are expected to reach a US $1.9 billion market size by the end of 2032.

4. CMS

The right content management system can help marketing teams work more effectively. However, the right platform should include a handful of features that allow final users to find everything they need in just one place. White-label SaaS that focuses on solving this issue will allow teams to manage new and existing content on their website in an easier way. All of this without having to learn any new technical skills.

In 2020, the CMS industry was valued at US $21.5 billion, and it's expected to reach US $53.2 billion by 2030. These numbers can support the idea of white-label CMS as a promising business opportunity.

5. Project management tools

A white-label SaaS built to work as a project management tool allows assets and tasks management, project planning, and scheduling, among other key features. Team leaders, members, and stakeholders can use this product to manage the working process, documentation and assets documentation, and more.

It's expected that by the end of 2034, these tools will have an approximate value of US $25.3 billion. Resellers can benefit from this white label software by being able to add a project management tool to their solutions portfolio, therefore, reaching a bigger audience.

6. CRM software

CRMs are focused on making the leads and customer management easier. Sales, marketing, and customer service teams use these tools to reach more clients and keep existing ones engaged. White-label solutions designed to cover these needs are essential to any business that's looking to grow.

In 2023 the global market size for CRM software was valued at US $91.4 billion, and it was projected to grow in 2024 to US $101.4 billion.

Benefits of white-label SaaS

As with every business, a white-label solution offers various benefits for the business owner and the reseller. Here are the most common ones.

As business owner

• The final product comes in a user-friendly platform.
• You can request help from the digital agency or company you're purchasing the business to use the SaaS platform.
• At times, companies who already offer white-label software have more solutions to which you may have easier access.
• Proven working platform.
• According to the deal reached between you and the reseller, you can get a final customized solution that follows your brand guidelines and content.

As reseller

• You don't need the necessary skills to develop the white label SaaS, nor the investment to build and the time to do so.
• In case you need any help using the product, most of the white-label SaaS providers offer customer service to help you assist your users.
• It has a low barrier to entry due to avoiding all the processes related to developing a new and robust SaaS platform.
• Having white-label SaaS solutions in your catalog will help you expand the scope of services your company can provide.
• Boost your brand visibility by reselling the platform under your own brand guidelines.

Disadvantages of white-label SaaS

Additionally, when using or doing research on a white label solution you'll notice that there are some disadvantages. Here are the most common ones.

As business owner

• Sometimes white-label SaaS platforms can overcharge because of extra costs (customization, customer support, and more).
• Dependency on the provider to make any meaningful and more advanced changes in your platform since the final product you receive will already be customized.
• New features and updates may not be aligned with your needs because the reseller may have other priorities in the roadmap.
• There might not be a competitive advantage to what other similar businesses are already using.

As seller

• Even if you don't have to invest in developing a new SaaS solution, you still have to pay the licensing fees.
• Because you are not fully aware of the cost of developing the white-label SaaS, you might have trouble pricing it. You'll have to do your due diligence before establishing a final price.
• Competing against free platforms.
• Building trust with customers takes a lot of time.

Get financing to buy a profitable SaaS

White-label SaaS platforms can be profitable business, but like all potential opportunities, it depends on factors like market demand, competition, pricing, and your ability to attract and retain customers.

At Boopos, you can access a list of vetted online businesses and get advice from our experts to acquire a new company!