White Label Solutions vs Building a Web3 Product From Scratch

In the current age characterized by rapid digital growth, companies are faced with a great dilemma when venturing into Web3 technology: should they go for a white-label solution or develop a product from the ground up?

\ Both have their advantages and disadvantages, and an appropriate selection can make all the difference in the success of a particular enterprise. This article explores both approaches, highlighting their benefits and drawbacks.

What Are White Label Solutions?

White-label solutions” or “white brands” refer to products and services that are created by one company but sold by another company under a different brand name.

\ This approach enables firms to sell products without having to bear the cost of developing them. The key points about it are that it's ready-made products, customizable branding, and facilities for quick market entry.

Advantages of White Label Solutions

There are also some benefits of white-label solutions which make most of their tasks easier.

• More economical: There are no development costs, which is very convenient for non-technical companies, media, or influencers.

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• Less time to reach the market: Less time to enter the market.

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• More on brand management: Emphasis is on sales, marketing, and branding.

\ Use Cases of White Label Solutions

Some of these white-label solutions can be used across different sectors:

\ E-commerce: Some retailers don’t sell their products, but rather sell the products of third parties under their brand.

\ Software or web3 dApps: Some companies allow others to rebrand their software or web3 dApps and sell them.

\ Financial services: They are not banks but sell banking services whereby their clients’ products are branded with the brand of the other financial service providers.

The Appeal of Building a Web3 Product From Scratch

There is absolutely nothing wrong with building a product from scratch. In point of fact, there are some benefits to it including:

Customization and Control

From the perspective of customization and control, creating your own Web3 product is one of the best options. There is how the product is built and that can be made to the tiniest details. This kind of control makes it possible for you to achieve your objectives as you envision.

Market Responsiveness

The best way to get a Web3 product is by starting its development from scratch, and it is because of the high chances of creativity that it brings on board. You can use one of the most up-to-date technologies and find new applications that cannot be incorporated into white-label solutions.

Long Term Vision

Building a web3 product from scratch can go along with developing a long-term vision. This involves planning for future growth. It's critical to create a product that evolves with the market.

Crucial Considerations For White-Label Solutions Initial Investment

As is the case with any venture, the seed capital required while launching a Web3 project may be high or low. It can also be very expensive to come up with a product from the ground up; this may cost as much as say, $1000 and above.

\ In contrast, a white-label solution is more viable and cheaper because the business does not need to invest a lot of money to develop the application, and it can quickly take it to the market.

Maintenance and Upgrades

Sustaining and enhancing a Web3 product is not one and done, it costs money. Contract-made solutions sometimes need a team to manage upgrades or to do the patching.

\ This could be really challenging for any non-technical firms and media specifically influencers. However, white-label solutions fix this problem by including maintenance and upgrades as part of the services rendered.

Hidden Costs

As can be seen, hidden costs can often emerge as a real threat to businesses and companies. These might be charges for extra services, regulatory costs, or even above-market rate hosting costs. These are the possibilities that one should take into account while setting his/her financial plan.

Development Timelines

While comparing the white label solutions with creating a Web3 product from scratch, one of the most important factors is the time needed to launch the product.

\ Pre-built features are available with white-label solutions which means that you can go live much faster. When developing from scratch, one needs more time coding, testing, and checking for bugs in the system.

Market Readiness

White-label solutions can be implemented fairly quickly, which is a big plus for any company that is aiming to enter the market for its activities. On the other hand, a custom that is built for Web3 requires much more planning and development which takes time, and thus, products may take time to reach the market.

\ Its findings on technical expertise and resource allocation CCTV have ensured the technical know-how of the personnel and resources have been well directed.

Skill Set Requirements

The creation of a Web3 product requires a combination of many skills when it is developed from the ground up. While others require special skills in areas such as blockchain, smart contracts as well as decentralized applications (dApps).

\ Also, it is crucial to know about cryptograms and protocols’ security concerning the application. However, white-label solutions are usually already built with more attributes, as a result of which the need for unique skills is eliminated.

Outsourcing vs In-House Development

Choosing to outsource or to develop internally is the first step to be made. Outsourcing helps to reduce costs and use specialized personnel, but using them means that much control over the project may be lost.

Case Study: Playnance UpvsDown White Label Solution

Playnance has distinguished itself as one of the leading pioneers of web3 white-label solutions by offering a more accessible model and less costly setup fees, eliminating the financial barrier faced by small businesses.

\ For a significantly lower fee, businesses can implement Playnance's a white-label solution, UpvsDown, with no monthly operating costs.

\ This solution is a Web3 P2P trading game where players predict whether the price of Bitcoin will rise or fall. The smart contract collects fees from the winners each round, and traffic owners (platform, media, or influencer) receive a portion of these fees directly from the winners' pool.

\ This approach empowers traffic owners, influencers and media to seamlessly integrate engaging products like Web3 games into their offerings. By attracting players and generating revenue, these businesses can establish new passive income streams.

Conclusion

The decision to either build a web3 product from scratch or adopt a white-label solution ultimately depends on a company's preference and material considerations. While both approaches are mutually exclusive, they offer great benefits.