When thinking and talking about white label solutions in the digital era and more specifically white label online forex brokerage solutions, we tend to focus on the side of the broker, i.e. the entity buying the solution from the white label provider. We analyse what they should look for in a partner and advice on what they should do to succeed and what loopholes they ought to avoid.
There has indeed been a lot of talk and analysis (you can find more information on our recent post Why and how to become a White Label Broker) as to how great white labelling is, as it makes things simpler for wannabe brokers and dismantles entry barriers to the market, opening up a vast array of opportunities for those wishing to jump on the bandwagon. And though all this is very valid and true, what perhaps merits further consideration is looking at things from the side of the white label solution provider as well.
What should firms providing white label solutions to aspiring forex brokers keep in mind in order to make their efforts more effective and ensure their own longevity as well? When selling a white label solution, usually the burden is shifted is on the white labeller in terms of branding the end product and making it attractive in a way that helps it stand out and attract clients.
Is that, however, a wise choice? Branding is so essential a component in today’s fiercely competitive digital entrepreneurial environment that it can make or break all chances for success. So, if you are in the business of offering white label solutions, in this case to forex brokers, but leave all branding and differentiation up to them, doesn’t branding become automatically a source of grave dangers if it is done ineffectively?
If many firms buy the same solution from the same source, then unavoidably they end up competing with each other, trying to essentially sell “the same product” to more or less the same target group of potential customers. In time, and as the white labellers increase in number, survival becomes more difficult for all.
Since when buying a white label solution, the only areas where differentiation can be achieved is in terms of branding, packaging (i.e. in this case mostly the look and feel of the broker’s website) and in the marketing efforts that will lead to converting clients and making the sale, these are the areas that merit further exploration from both partners in a white labelling arrangement.
For a White label Forex Brokerage Solutions Provider to be able to ensure its position and further establish its authoritative presence and impact on the overall market, it too should select its partners carefully. Since a white label partnership is intended to be mutually beneficial arrangement so that it can last and endure the test of time and the market strains, then one could draw the analogy that the two partners should view and treat it more like a marriage. A union from which a divorce should be an undesired outcome.
To take the analogy further then, the partnership should be based on mutual trust and respect, but also based on a true perception of what each partner brings to the equation, without building illusions or expectations that cannot be met.
In short, if you are a white label provider in the forex brokerage online industry you shouldn’t just aim to sign on as many wannabe brokers as possible and leave it entirely up to them to be able to stand out and succeed. If you do that, then most probably they will soon fail and your relationship will end or they may resort to unscrupulous methods to succeed, thus tarnishing your own good name and reputation in the process.
How to Meet the White Label Brokerage Brand Challenge
As a white service provider you will be as successful as your white labellers are themselves. Therefore, empowering them to be able to survive, compete in an effective manner and managing to stay afloat amongst the sharks and other scary creatures out there, should be high on your own list of priorities as well.
To achieve this, you may need to re-evaluate your own offering as well, perhaps your vision and direction and even your culture as an organisation. I am not claiming to have re-invented the wheel here, but based on my years of experience in the online digital ecosystem I feel that those white label solution providers who really want to ensure their longer term success and that of their partners, should take the bold step of becoming themselves truly strategic white label providers, instead of settling with remaining mere white label providers.
Strategic, which as the term itself reveals, entails providing a solution that is of paramount importance within the integrated whole, a solution that is excellent, and geared to be overall and long term.
This path is not an easy one and does require effort from the side of the white label provider, but it is my strong conviction that is attainable and holds a great potential.
If you are curious and want to know more about the hows and whys and the what ifs of this proposition... then stay tuned. More is coming up soon.
This post is part of the Redefining the Rules of Starting Your Own Brokerage Series, which analyzes what people who want to Start their Own Forex Brokerage, should look for in a partner and advice on what they should do to succeed and what loopholes they ought to avoid.
Part 1: Starting Your Own Brokerage: The perspective of the provider
Part 2: The need to differentiate Your Brand
Part 3: Starting Your Own Brokerage: The Need of a Strategic Partner
Part 4: Starting Your Own Brokerage: Shaping the future of trading