If you’ve held off creating your first app because you assume you won’t be able to turn a profit, you’re missing out. While it’s true that some app developers in the No Code space take the route of charging 99c for their apps, there’s an alternative: white labeling.
What is White Labeling?
This is when you create an app with the very clear purpose of solving an issue, or addressing the need in a company. You create the app, remove your logo, and allow said company or brand to use the app with their own branding and logo. You can do this for as many customers as you please. The more familiar you are with the needs and pain points of your target sector, the better your app and pitch will be.
Why would a company opt for a white label app?
Cost: Customized software development can easily reach the six-figure range depending on the size and functions of the app.
Time: If a company is in a rush, they don’t want to wait 4-6 months to develop their own app. In the No Code world, you can build an app in an hour, whereas building an app with code from scratch can take months. Most companies would prefer a faster turnaround time.
Imagine: a stranger appears at your door. In their right hand, they’re holding a 3-layer chocolate cake on a plate, and in their left hand they’re holding a bag of ingredients to bake a cake from scratch. Which would you choose? Could you bake it yourself? Sure! Do you feel like it? Probs not.
Do I need to know how to code to white label an app?
Absolutely not. Many AWC Bootcamp alumni have gone this route and found success. No Code technology has come leaps and bounds in recent years.
Here’s an example of white labeling:
Megan wants to create an app to help the homeless find their closest shelters, food banks, charging stations and soup kitchens.
Megan specializes in social work, and not IT, but she’s an alumna of the AWC Bootcamp and created her first app in 12 weeks. Now what?
Should Megan:
- Hope and pray that her target demographic, the homeless, see and download her app for free or 99c?
- Pitch her app to NGOs, many of which receive funding to optimize their spending and productivity, and charge them 20k a year to use the app she’s created?
Megan chose B. She opted to white label her app to four different NGOs, 1 food bank, and a women’s shelter. Megan now expects to earn an extra 120k a year in passive income. Megan is clever. Let’s learn from Megan.
What are the cons of white labeling an app?
From the side of the app developer, the main con is that you sacrifice having your name associated with the product. You don’t get credit for your work, you get a check. You may also be required to provide support for the customers, or user guides; you may need to make any necessary updates, maintenance or changes.
What are the pros of white labeling?
- Higher ROI: you can price your white label app anywhere from 3k to 100k per year depending on your customer.
- One-size-fits-almost-all: you can sell your white label app to as many customers as you please.
- Fewer Marketing Woes: It’s not your job to make sure your app gets seen + used by the right people, that’s the responsibility of the company using your app!
Is it worth it to white label an app?
For No Code developers with the right support, idea and plan, white labeling their apps is a great way to ensure higher profit margins. It’s still a great idea to have a mentor to navigate this territory however, which is why the first step is identifying whether or not your idea has both potential and demand. That’s where we at AWC come in.
If you’re interested in learning more about our No Code Bootcamp, you’ll find all the information you need here!
