White-label service

White-label service denotes a service provided by one company but offered under the name or brand of another. To customers, the service appears to be part of the marketing company's own offering.

Basics

In the white-label model, a specialised provider takes over the operational execution of a service. Another company integrates this service into its own offering and acts as the provider to customers.

This model is used in many industries to offer services without having to fully build their own infrastructure or specialised teams from scratch.

Classification within the service environment

White-label partnerships are widespread in the service sector. They allow companies to expand their portfolio and offer additional services.

The model is based on a cooperation between two companies: the service provider and the company that offers the service under its own brand.

Classification within the System of Service Models

White-label models allow companies to offer additional services without having to organise them entirely in-house.

Typical areas of application

  • Software solutions and platforms
  • Digital services
  • Accounting and Payroll Services
  • Technical infrastructure services
  • Service platforms

The actual provider often remains in the background, while the service is offered under the brand of the marketing company.

Typical procedure

  1. Cooperation between two companies
  2. Integration of performance into the offering of the marketing company
  3. Provision of the service by the white-label provider
  4. Customer contact via the marketing company
  5. Background operational performance

Practical relevance

White-label models are frequently used to bring services to market more quickly or to expand existing offerings.

For companies, this can be a way to offer additional services without having to fully build their own technical or organisational structures.

Typical sources of error

  • Unclear division of roles between partners
  • Lack of coordination in service processes
  • different quality standards

FAQ

Was bedeutet White-Label?

White-Label means that a service is created by one provider but is marketed under another company's brand.

Are white-label and outsourcing the same thing?

When outsourcing, a service is contracted out. In the white-label model, a service is additionally offered to customers under one's own brand.

Conclusion

A white-label service allows companies to offer services under their own brand, even though the operational performance is provided by a specialised provider.

Author the BAS editorial team Services pursuant to § 6 No. 3 and 4 StBerG, no tax or legal advice.

Brasser Accounting Solutions GmbH is a specialised accounting service provider and part of a corporate group with Quint GmbH (tax consultancy/auditing) and Service Place Årjäng AB (Swedish tax office). BAS exclusively performs services according to § 6 No. 3 and 4 StBerG and does not provide tax or legal advice.