Ready to launch a successful Private Label Brand? Once you read this article fully, you’ll know how!
Are you a hungry entrepreneurial type who is always searching for the latest and most successful business models to invest your time, talent, and energy into? If you answered yes, then we have a hot business trend that you will not want to shy away from…private label brand marketing.
Entering the world of building your business around a private label brand is a highly sustainable model and exciting way to bring in great income. With this being said, competition in the PLR market can be fierce. For example, over 50% of sellers on e-commerce platforms like Amazon are using private label marketing for their products. This doesn’t mean you cannot be wildly successful. It simply means that you need to have an excellent private label branding strategy.
First, you may be curious about exactly what a private label brand is. In simplest terms, private label branding is purchasing a product and paying for the private label rights (PLR) to market it as your own. Many grocery stores do this with their store-specific brands. This private-label branding can take your product line to the next step by personalizing it and giving your specialized product differentiation from similar “national brands.”
Private label marketing can be lucrative because it gives you complete control over how your product looks and is marketed. You get to target your perfect customer base and create the ever so necessary brand loyalty so that your consumers keep buying what you are selling. Remember, customers tend to be brand loyal, not product loyal.
Today, we are here to help you develop those strategies and give you the tools to build a highly reputable and popular private label brand business from the ground up.
Our Top 7 Steps To Building A Successful Private Label Brand
- Know your costs
Although private label branding requires a higher initial investment than reselling or drop shipping, it tends to yield a much greater return of profit over time. When you decide to begin your private label brand business, you will want to account for costs in the following areas:
MANUFACTURING: Your physical product will need to be made, and this product production will include raw materials costs, along with labor and customization. Once your product has been made, it will need to be shipped, and those expenses will need to be accounted for as well.
BRAND: It is vital to have eye catching graphic design in your product branding. In most cases, unless you are an experienced graphic designer who focuses on marketing, you will want to outsource this job. This is well worth the money.
MARKETING: If people do not see your brand, they cannot buy it. A great marketing campaign focused on your target customer can quickly help you to rise to the top of your niche. Using boosted social media advertising, influencers, and a well-designed website are all excellent marketing strategies to employ.
- Identify your product line
When choosing what to market through your private label brand strategy, it is best to start by focusing on a single product. This will often be a generic product that you then customize with your branding to fit what your target consumer is looking for. Starting with one product also allows you to have a better idea about business expenses and profit margins. It can be tempting to start investing in multiple products, especially if things are going well, but expanding too quickly has been the downfall of many startup private label brand businesses.
- Carefully choose your sourcing agents
Once you have identified the product that you wish to buy PLR to, you will need to research manufacturers from which to source your product. This part can sometimes be overwhelming, as there are oftentimes many sources you could choose to work with.
Our best advice is look for a company who has been successful at private label branding for a long time. Don’t be afraid to network and ask around about who is reputable. Experts in this field are typically more than happy to share this kind of knowledge. Along with reliable recommendations, you will also want to take into consideration who offers the best pricing, consistent service, product inspection and product warranties or guarantees.
- Target your audience
When launching your private label brand, knowing your audience is a huge part of marketing success. You will need to use targeted advertising, as well as think about what you are going to do to set your product apart from all the other similar items on the market. This can be done through physical branding or advertising tone.
- Develop your look and experience
When consumers choose to purchase your product, they are also choosing an experience. Your logo, packaging and advertising should all reflect this consistently across all media. Before you select your name and branding graphics, double check that the web domain you wish to use is available. Also, search to ensure that your creative graphic design is unique to you. You do not want to pay for everything developed and then get slapped with a copyright infringement suit.
- Build your brand
You have everything ready to go, but before you launch your business, make sure that you have copyrighted your brand and logo and formed an LLC or similar entity. These steps will protect you legally as you build your brand. Also, make sure you have a fully functional website and e-commerce presence. Finally, tap into all that social media marketing has to offer. Millions use these platforms every day, giving you the potential for optimum brand exposure.
- Ready, set, launch
Once you have all the above steps completed, you are ready to launch. Get your name out there, boost those posts and ads. Get your brand into the public and into people’s hands. Offer great customer service and watch your profits rise.
We hope that this guide assists you in preparing to launch a successful private label brand business. Stay tuned for more great posts like this to help you become a PLR master.
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