Private label products are products that are sold and branded under your own company brand name, but are actually made by a source manufacturer or wholesaler. Private label products can be a great way for businesses and entrepreneurs like you to save money on product manufacturing, quickly expand product lines, and also to build your own brand without requiring you to invest in the equipment or labor to manufacture the product yourself.

Private label products are unique products that are created and sold by someone other than the original product creator. This can be a company that creates and sells a branded product, or it can be an individual who creates and sells their own unique product and licenses it to others to sell.

Many stores take advantage of private label products that are sold under their own name. The most notable everyday example are grocery stores, where private label products such as cereals, soups, frozen food items and snacks are all sold under the company’s “store brand.” Virtually every grocery store does this, and some grocers (such as Aldi’s and Trader Joe’s) source and sell private label products almost exclusively while offering few products from major mainstream brands.

Private label products are not limited to just grocers, however. Many products are commonly private labeled, including department stores offering their own lines of branded clothing, pet stores offering toys and food under the store brand name, beauty salons offering shampoo and other hair care products under their brand name, and much more.

As an entrepreneur, there are plenty of benefits to owning and running a private label product business. Here are just a few:

1. You can control the quality and look of your product. The perception of the product is first and foremost, whether you are selling a private label product or your “own” in-house product.

2. You can set your own prices and can make your product available to a wider range of customers. You can choose a premium price point, or you can sell it for a lower price point and hope to get volume sales.

3. You can generate extra income from the sales of your product, without having to share any of the profits with the original product creator. Generally speaking, with most private label products, you only pay once for the manufactured product (or for a one-time royalty-free license to sell a digital private label product, as we’ll talk about below) and you won’t need to share the profit.

4. You can build a loyal following of customers who are loyal to you, your brand and your product, rather than to the original product creator. Just by being the prime “source” of a product, even though someone else is the manufacturer, you’ll boost authority and credibility.

5. You can use your private label product to build an online presence for your business, and reach a wide range of potential customers. Whether you are selling a physical product or a digital product, you can use your product to establish an online presence and an extra foothold.

There are a few things you need to keep in mind if you're planning to start or run a private label product business. Chief among these is the need to have a clear concept and plan for your product, as well as the necessary skills and knowledge to create and sell it. Additionally, you need to have a marketing strategy in place to drive traffic and sales to your product, and to build a positive reputation around it.

When it comes to selling physical private label products, there are many different types of private labeling agreements. The most common types of private labeling agreements are product marking agreements, design and development agreements, production agreements, and marketing and distribution agreements.

Product Marking Agreements

Product marking agreements are agreements between a supplier and a private labeler that require the supplier to mark the product with the private labeler's trademarks and logos. Product marking agreements can be unilateral or multilateral. Unilateral product marking agreements are between the supplier and one private labeler, while multilateral product marking agreements are between several private labelers. A unilateral product agreement will likely be far more expensive for a private labeler, but will often create a custom product that will not be replicated by others.

Design and Development Agreement

A design and development agreement is an agreement between a supplier and private labeler that requires the supplier to provide the private labeler with the necessary design and development resources to produce the product. A private labeler will often work with the supplier to coordinate on specific branding to be incorporated into the design.

Production Agreement

A production agreement is an agreement between a supplier and private labeler that requires the supplier to produce the product for the private labeler. Production agreements can be unilateral or multilateral. For most private label arrangements that entrepreneurs enter into, where the product is not customized, a multilateral agreement is most common.

Marketing and Distribution Agreement

A marketing and distribution agreement is an agreement between a supplier and private labeler that requires the supplier to market and distribute the product for the private labeler. Many times, the private labeler is responsible for all marketing, but the supplier may agree to some sort of distribution strategy to ship the product directly to stores as required by the private labeler.

No matter what type of business you plan to build, you can likely integrate private label products, as there is a less common type of private label product that you may not have heard of before…

According to Statista, the e-Learning industry is on track to grow to over $400 billion U.S. dollars by 2026, and digital private label products are likely to play a big role in that growth.

Private Label Rights Products, also known as “PLR Products,” are private label products that offer a private label rights (PLR) license that allow entrepreneurs, website developers and business owners to use digital content, such as PLR reports, articles, ebooks, courses, software and other content under their own brand name, in the same way that “real world” private label products can be branded.

This private label content can typically be used to help write or publish articles for use on a website or app to promote a product or service, or the content can be directly packaged and sold as its own e-learning private label product, depending on the licensing rights offered by the private label provider. At Rhodes Reports, we offer Master Private Label Rights on many of our digital products, which means there are virtually no restrictions on how you edit, sell or re-use them.

As an entrepreneur, there are a few things that you need to consider when selling your own private label products, whether they are digital or not.

First, you need to decide what private label products you want to sell. You can either create a new product or modify an existing product. It is important to remember that private label products need to be unique if you want them to be successful. It is easiest to make digital private label products your own, as you have the right to completely edit and rewrite the content.

Next, you will need to come up with a good brand name. You don't want to choose a name that is already in use or that is too generic. You also want to make sure that the name you choose is legally permissible. You will want to avoid names that are trademarked or copyrighted.

After you’ve found a brand name you like, you will need to design a logo for your private label product and brand. A good logo will help differentiate your product, will help the public identify what your product is about, and will also help to increase sales by portraying authority and improving your credibility.

Once you have designed a logo and decided on the private label product you want to sell, you will need to create the packaging design. You will want to select a packaging design that is both eye-catching and functional.

Note: Even for digital private label rights products, it’s important to design and use digital e-covers to help increase the perceived value of your report, ebook or course.

Finally, you will need to create a marketing plan for your private label product. This plan will include things like pricing, distribution, and marketing efforts. Will you position your private label product as a premium good, or will you target volume and give it away for free to use it to acquire leads? Will you distribute it on marketplaces and platforms, or through your own website? Will you advertise it or use search engine optimization to help it sell?

Physical “real world” private label products are typically sold, but digital private label rights products can be used in a wide variety of ways, including the following:

1. Producing e-books, white papers, and other digital content: By creating informative and useful e-books, white papers, and other digital content, you can increase the brand recognition of your business and draw in new customers. You can also directly sell the content itself as an e-course or other e-learning product.

2. Developing and selling software products: There are some providers that offer private label software products with source code rights. By developing and selling software products, you can customize the software, increase your brand recognition, increase your business's profitability and reach a wider audience.

3. Producing custom digital products: By using digital private label products, you can customize the content you licensed to create custom-made digital products for other businesses, which can differentiate your business and theirs from the competition and increase everyone’s profits.

4. Developing and selling web services: Using private label products can help you find new ideas for developing web services, and provide additional sales materials that can help you sell them. You can create a valuable and unique offering that can attract new customers.

Private label products can be a powerful marketing tool for small businesses and entrepreneurs. When you take advantage of PLR rights, you can create products or services that are officially endorsed by another business, enhancing your credibility and reputation as a marketer.

Rhodes Reports is one of the leading providers of digital private label rights (PLR) products and offers discounts when new PLR is released. If you’d like to receive e-mail notifications and get free training videos about how to use PLR in your business to profit, be sure to sign up for our Free Alerts list.