Have you ever thought about your own business on antivirus software market? If yes, this article will show you the main “pros” and “cons” of making business under white label program.
Obviously, there are two ways how you can create your own antivirus solution: to develop software from scratch or to become a partner of company that provides white label services.
“White labeling” means changing product design, name, and in some cases, functionality of the already existing solution, and selling it under different brand. Basically, you can take already existing product, attach your name to it and sell at the pricing policy you want.
Obviously, every business model has its “pros” and “cons”. Here are main advantages of white labeling:
Start business in one month
The main characteristic of every white label program is that you can start your business very quick. If you do not have special requirements to product functionality and existing antivirus solution is up to your demands, the process of white labeling will take not more than 2 months from the first contact.
Zillya! Laboratory has experience of new product launching even in 1 month!
Clear your mind from technical issues
Taking part in white label program, you do not have to think about product development. Moreover, in case of antivirus software white labeling, you also avoid every-day routine that is connected with antivirus database updates.
Every day Zillya! Laboratory ads more than 30.000 new signatures about malicious software and phishing websites. So, you can only imagine the volume of work that expects you in a case if you will be responsible for this part of business!
Stay focused on sales and marketing
Do what you love and you will succeed. The picture below shows how Zillya! and our partners share responsibility for newly created antivirus solution.
If you are distributor or reseller of existing product, you always have to agree your marketing and sales policies with “general line” of vendor. You always play on the side of antivirus software producer in pricing, placement, promotion, and brand positioning.
But when you have white label solution in your product portfolio, you have total freedom in decision making. So-called “hands-free” mode of business!
Make your market segmentation deeper
Antivirus software market is highly competitive. It is very difficult to enter it with “wide” positioning. You have to choose your target audience/segment and make best offer exactly for this audience, otherwise your marketing budget will be bloated and efficiency of your marketing activities will be very low.
White labeling allows making deep customer segmentation and offering the best product to every segment. For instance, Zillya! Antivirus solutions have more than 20 modules to protect end users. You are free to make “modules mix” according to your audience’s demands. If Indian users got used to parental control as a part of Internet Security solution, you can remove this module from Zillya!’s Total Security solution and just to add it to your Internet Security product.
Keep flexible pricing for your clients
It is needless to say how important flexible pricing is for companies that just entering new market. You never know how the audience reacts to your product and you have to have an opportunity to make the price lower or higher at every moment. White label programs are always aimed at providing partners with space for price maneuver.
Build your own high marginal sales channel
80% of sales on developed markets are generated in partner channels. What is the most important for partners besides brand awareness and high level of support? Pricing, for sure. If you offer resellers and distributors product with high margin, they will close their eyes on possible low brand awareness and start work with you because of money factor.
At the time, when the highest margin for antivirus software in the channel is 30%, make the offer that distributors can't refuse – give them 50% margin. White labeling allows doing this.
Get market expertise from your OEM-partner
It is always very important to have a partner with much experience of work on particular market. For instance, Zillya! Laboratory has more than 30 white label partners around the world and, surely, has a lot of business cases which may be used for new businesses.
A bright example of such business case you can find here.
Sure, the list of “pros” of white labeling above is not complete and can be added with more arguments. But, we have to be fair and say a few words about “cons” of white labeling model.
Dependence on vendor’s technical development
While choosing product for re-branding, you have to understand that antivirus solution under your own brand will have the same strengths as well as weaknesses of existing product. So, if product, which you choose, does not have online chat for support, your product will not have it also. Otherwise, you will have to order development of additional functionality and it will take your time before the start and, of course, money.
The origin of product may be used by your competitors in the “black” PR
Sometimes competitors may argue to your potential customers and users that your product is “1 day” product because it has no its own technical base. You have to be ready to react on such dirty game.
Flexible, but not free
White label partner model means that you are flexible in your sales and marketing but you also have obligations, first of all, financial. White label provider is interested in your success, but you have to understand that his business also depends on you. That is why, usually, you will have to sign agreement, where you will have financial obligations expressed in minimal license fees that should be paid in any case.
These are three main disadvantages of white labeling.
As you can see, the list of “pros” is much longer than the list of “cons”. In any case, you have to remember: those who don't take risks don't drink champagne.
Read the success story of our partner, Mr. William Ragusa, who entered antivirus software market of USA. Keep calm, make business! ☺
