Use White Label or OEM Products to Turbo Charge Sales Into Enterprise Business Targets

Consider offering a white label or Original Equipment Manufacturer (OEM) version of your tangible or intangible product or solution to create an entirely separate dimension to your enterprise sales efforts for large corporate prospects.

With regard to intangibles, as long as your intangible product has been branded, and your product marketing strategy has been clearly defined, it is entirely appropriate to consider distribution via white label or OEM channels. It is also appropriate to avail of these channels for businesses with market visibility and, as well, for businesses that have opted to operate under the radar of the marketplace.

In fact, availing of White Label or OEM channels is especially useful when a business is operating under the radar. Indirect sales channels (inclusive of white label and OEM) equip a business with powerful tools to test the receptivity of markets in many ways; for just one example, to test market readiness to a scalable offering that presents different feature sets for different portions market segments. Further, if your white label or OEM customers are larger than you and speak with a more authoritative voice within the market (quite often this relationship will be the case as, in my experience, it is larger businesses with an established market position that will spend the time to reconnoiter the periphery and unearth companies, like your under the radar effort, to protect their market positions) then you can establish inroads to prospects that promise rich streams of repeat buy potential by riding on the backs of their success and established procurement relationships.

I have considerable experience working with a business that spent the necessary time building products into scalable offerings. Consider that the objective of building scalable products, in this case (specifically, a computer hardware solution for sharing computer peripherals), was not only to empower white label and OEM partners to penetrate different portions of the market, but also to open an opportunity to attack the same market via a direct sales force which was properly segmented (via features and discernable market segment strategy) to permit coexistence with healthy indirect channels, all addressing the same customers and prospects.

Of course, it is critically important that the boundaries of permitted activity for indirect white label and OEM partners be clearly defined through your partnership agreements. Better to carefully structure these agreements before commencing negotiations than to rudely discover loopholes after the fact.

© IMB Enterprises, Inc. & Ira Michael Blonder, 2011 All Rights Reserved

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