White Labeling Has Its Gray Areas

Will I be sacrificing customer service to preserve revenue? By reselling a product or service to my customers, how effectively can I still tailor it to their unique needs? While my original intention was to utilize white label VoIP to retain the customer, am I at a greater risk of losing them due to lack of flexibility and potentially inadequate service?

Who will be in control? If issues arise, I want to provide my customers with immediate answers. Do they call the white label provider first? Who holds the power to correct changes and implement the necessary improvements? Who is ultimately accountable? Often, the lines of communication get muddied in white labeling relationships, resulting in the buck getting passed.

Will there be any noticeable inconsistencies? How fluid will the “hand-off” be? Will my customers notice an inconsistency in personalized service? How can I anticipate and be prepared to handle any inconsistencies the customer may experience?  Involving a white label third party can complicate, rather than enhance, the customer’s experience so proceed with caution.

Do the financial gains make it worth my while? While VoIP hosted service, in general, comes cheap and easy, do not lose sight of “hidden” costs. This can be prevalent with white labeling. In many cases, sales hours get replaced by hours devoted to technical support and issues resolution. With this in mind, am I still experiencing increased margin?

Are there legal liabilities attached?  Any partnership carries legal liabilities and white label partnerships are no exception. Am I at risk for violating my contractual obligations if the partner doesn’t hold up their end of the agreement?  If you choose to market a white label service, it is absolutely essential to remember that it is ultimately you who carries the risk, both legally and financially.