If you want to launch a crowdfunding platform, then it is best to implement this idea with a white-label solution, as this approach will allow you to launch the platform quickly and reduce launch and promotion costs. As a result, you will not only reduce risks but also get a reliable product that has been tested over time. In this article, we will explore the benefits of the white-label model and how to choose a solution for a white-label crowdfunding platform.
White label business
White label is a type of partnership between two companies: one produces a product or service, and the other sells them under its own brand. At the same time, each participant focuses on their area of expertise, resulting in mutually beneficial cooperation based on the win-win model.
The white label concept is often used in the mass production of consumer products. The same product can be sold under different brands and in different price categories.
On the Internet, many services offer to use the white-label as a tool for their affiliate program. Partners are provided with a ready-to-use tool, such as a web service, and are invited to promote it on their domain, with their own design, and under their own brand. The profit is then divided among the partners.
Why a white label is needed for a manufacturer of a product or service
The main problem of any business is attracting and retaining customers; without customers, a business cannot exist. A company can attract customers on its own by hiring marketing and sales specialists. And it can partially or completely outsource the sale of goods or services to its partners, giving them the right to sell the product (including under their own brand). This option allows the company to quickly popularize and improve its product, and reach new target audiences without unnecessary promotion costs.
Benefits of white label for partners
Why do many many people refuse to develop their own product, and choose to work on a white-label model? Let’s look at some of the reasons.
- Quick start. You get a ready-made business, bring a new product or service to the market before competitors.
- Low threshold of entry, minimum costs of funds and time.
- You are acquiring infrastructure that is far beyond your expertise and financial capabilities.
- Daily routine. The company that provides the white-label solution takes control over ensuring the operability of services, processing payments, refunding money, resolving disputes, etc.
Disadvantages of white label for partners
Despite all the advantages, the white-label model has its drawbacks:
- The white label does not allow you to control your product or service by 100%, you will have to play according to the rules of the affiliate program.
- There is no way to add new functionality yourself.
- Not always a transparent system of payments.
- The sites of partners working on the white label are mostly identical in functionality and content, therefore they are poorly ranked by search engines.
How to choose a white-label solution for a crowdfunding platform
There are quite a lot of white-label proposals for the crowdfunding platform on the market. Let’s look at the factors that will help you make the right choice.
First of all, you should decide on the fundraising model and target audience. Not all white-label solutions can support the funding model you need. There are several main forms of financing:
- donation service (this service is aimed at businessmen who raise funds for business development or social, educational, and environmental initiatives; non-governmental organizations that provide support to refugees, people with illnesses, and victims of disasters);
- service with a reward (this service is aimed at entrepreneurs, programmers, startups, as well as large companies that want to raise funds for business development, launching new products and services, as well as paying debts; people of creative professions, including bloggers and musicians, who need financial assistance to record an album, design an exhibition, shoot a film, etc.)
- equity-based service (this service is aimed at start-up businesses that do not have the opportunity to conduct an IPO; startups that are looking for financial assistance to implement their initiatives, and large companies that need additional funding for projects);
- service for tokenization of assets (such services are focused on blockchain startups that need early financing; construction companies and realtors who want to get money for real estate construction; farmers who want to tokenize the future harvest);
- service based on peer-to-peer lending (such services are aimed at consumers with a negative credit history; people who have a distrust of banks; individuals and companies in countries with unreliable banking, economic, and/or political systems).
Service features and interface language
Many white-label solutions only support English, if your target audience and team use another language, you need to look for software that supports the desired language.
The functionality of the service is also important when choosing a white label. We recommend that you think over and make a list of necessary functions and tools in advance. This task will help to cope with the assessment of competitors.
Support for payment gateways
When choosing a white label for a crowdfunding platform, you need to evaluate the supported methods of depositing and withdrawing money. In addition to traditional Visa, Mastercard, and PayPal, support for cryptocurrency payments and local payment systems in the region you need will also be a plus.
Installation, configuration, and training
An important factor when choosing a white-label solution is the ease of installation and operation of the software. We recommend that you ask if the vendor has a user training program.
Reliability and security
When choosing a white-label solution, you should make sure that it will be safe for all users. The crowdfunding platform and other software of the provider should support protection against DDoS, XSS, and CSRF attacks, and have two-factor authentication and other data protection solutions.
In addition, you need to pay attention to the design, SEO of the site, and price of the white-label solution.
The white label seems to be a good solution for those who want to start their business as quickly as possible with minimal investment. If you are looking for a white-label crowdfunding platform solution, LenderKit is a reliable provider of such solutions. The company’s software is great for peer-2-peer lending, equity crowdfunding, and real estate investing. The software is easy to use and provides all the necessary functions for secure payment processing.