Primer on Private Labeling – By Eric Almquist

by Colleen on March 1, 2012

Private labeling refers to the practice of reselling a brand or entering into a co-branded agreement with a vendor. There are a many variations, but I will share a few common ones.

White label mostly refers to the sale of physical products such as herbal supplements, equipment and beauty products. This practice is prolific offline, think supermarket brand merchandise like vitamins and hand soap.

These are tangible items made by one company, sold to another, and repackaged. They can also be found online. One example is engaging in a drop shipping agreement where the affiliate will run a site independently and once the order is completed and information passed, the supplier will be responsible for fulfillment. Some refer to this as a third party white label.

PLR or private label rights have to do with the licensing of content, software, and videos. Internet marketers pay a fee to the original creator to use as they wish.

A private label site mostly refers to online based products, such as dating, floral, web hosting, travel, and public records. The vendors for these large distribution networks provide robust APIs to support the private label development on the front end.

An advantage here is the visitor remains seamlessly on the affiliate’s domain, reducing friction in the sales process. This can lead to trust and increased conversions.

With digital products and in the public records niche in particular, a large portion of revenue comes post-sale in the member’s area. Affiliates are given customization options for price points and products included in the member’s area.

Depending on the agreement, private label affiliates receive a portion of this revenue, transforming the relationship into a true partnership as opposed to an affiliate relationship. The vendor provides payment processing and customer support, leaving only marketing up to the affiliate.

Increased interest in private labeling may be attributed to the reaction to changes in Google AdWords Policy regarding landing page quality. Many believe Google is out to get affiliates, but I don’t think this is the case.

Black hat marketers have cast a shadow over the industry, thus putting it under the microscope. Thin affiliate sites linking to offers with a bad reputation are a surefire way to suspension.

So, an option is to scrap the bridge page or squeeze page and build your own brand on your domain with API data and unique content to compliment. A private label can be the foundation for an authority site with staying power on Google AdWords for a long time.

Remember, no affiliate links, no redirection, and no pop ups.

If you’re interested in starting an online business without the hassle of applying for a business license, developing a product, and integrating a payment gateway, this could be the solution for you. Setup is free, so it’s a great opportunity to make money online selling a product you believe in.

Eric Almquist is Program Manager at InfoPay Affiliate Network.

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{ 1 comment… read it below or add one }

part time job from home March 1, 2012 at 5:59 pm

Interesting article. I never thought about doing the whole “white label” thing before. I’ll have to consider it.

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