Whitelabel vs Source Code - Which to Choose?

This Doesn’t Apply ONLY to Crowdfunding/P2P

What you need to understand, is that this info is purely my opinion, but it doesn’t just apply to crowdfunding and/or peer-to-peer lending platforms. With more or less similar pros and cons, this also related to any kind of lending (payday, car, business, etc) platform set-up.

Whitelabel VS Source Code

Whitelabel solutions are like a one-size-fits-all solution. They are easy to use and come with a ready-to-go interface and content. You can get them in the form of an SaaS or by hiring a company to build it for you.

For example, a white label software developer, let’s call it Company Z, may build a generic framework for various businesses by offering CRM (customer relationship manager) software. Instead of developing their own CRM system from scratch (more time and finances are required), most businesses can buy a solution from Company Z, customize and rebrand it as their own product.

What matters here the most, is you have to strongly evaluate what kind of offer you are getting from the company.

On the other hand, if you want to own the source code, you need to be able to understand how each part of the system works, what kind of logic is behind many calculations, which is not always easy. You also need more time and resources than with a white-label solution. But this could be your preferred option if you have those resources and skillsets.

Main Costs in Each Solution

Whitelabel

Set-up fee – usually process consists of setting up the client with an MVP version (to later work on bugs). This process usually includes the design and UX/UI phase.

Design afterward gets developed by the frontend developer and the backend developer connects all processes and logic to the backend.

Licence fee - some providers charge it on a yearly or monthly basis</li><li>Monthly fee - support + some companies offer deep customizations and implementation of new features

Of course, there are quite a few ifs and buts, but generally, this is how a pricing structure looks for a typical white-label solution deal.

Source Code

The cost of running a team of developers is higher than ever before. The salaries, office space, and other expenses are all on the rise. Furthermore, software developers are really in demand now and for the last couple of years, thus the hiring costs have increased as well.

Therefore, to get an estimated budget, you would need to take into account the factor of hiring a team – with costs varying depending on the region. Once you get that, you would need to write a complex and thorough description of all tasks, with all the logic behind them. Then, your senior developer will be able to estimate the terms and amount of people it would take to finish the project.

App Store Reviewal Process

It is no secret that mobile app traffic has been on the rise for the last decade probably. In some countries, people even use App Store/Play Store as an alternative to search engine, which means they instantly look for an app to solve their problems.

Depending on your niche, offering a mobile application to your users is always going to be appreciated! Crowdfunding and peer-to-peer platforms are not an exclusion. This brings us to the next point – getting your app reviewed according to Apple App Store guidelines, which oftentimes can be troublesome if you didn’t have any experience prior with it.

Ultimately – Whitelabel Or Your Own Source Code?

This is a difficult question to answer and it really depends on the business needs, how important the brand image is for you, and how tight your development budgets are.

Overall, we would say that from a time and cost perspective – white label is the way to go. Your time to market is times shorter, when compared to coding your own solution. Once you feel more confident, you know all the ins and outs (from technical perspective), then it makes sense to invest in your own custom software, which you own and can customize however you wish!