Imagine this: You’ve built a successful SaaS platform, and businesses are lining up to use it under their own brand. White-labeling seems like the perfect opportunity to scale your business without the hefty costs of mergers, custom development, or outsourcing to an agency. Starter Story even found that white label SaaS platforms generate an average of $789K per year. But even if you’re able to successfully white label your platform, there’s still the question of pricing.
Specifically, how are you supposed to price your own brand as a white label offering?
A well-structured pricing model will affect your profitability, and it also determines how your resellers position your product in the market. It is essential to get it right, and in this guide, we will help you understand what pricing options are available to you, how to price your white label SaaS, and how to scale your white label offer sustainably.
Why the right pricing strategy is so important for white label offerings
White label SaaS is an appealing business model because it lets companies deliver a fully branded software solution without the cost and complexity of building one from scratch. But here’s the catch: Pricing can make or break the whole operation. Set it too high, and you risk driving away resellers. Too low, and your profit margin evaporates. The right pricing strategy strikes a balance between being competitive enough to attract resellers and profitable enough to sustain long-term growth.
That’s why a well-defined pricing strategy does more than balance your cash inflows and outflows; it directly impacts how resellers position your product in the market. For example, some resellers may want a budget-friendly solution to compete on price, but others may want to create a premium offering with higher profit margins.
This same rule applies to the pricing models you offer. Some resellers will prioritize volume-based pricing, while others will look for feature-based models that let them scale incrementally. If you haven’t built your pricing structure with that flexibility in mind, you risk limiting your reach. Startups and small businesses, in particular, are going to need pricing options that allow them to grow without massive up-front commitments.
Understanding white label SaaS pricing models
When it comes to white label software, different resellers have different needs, and the pricing model you choose can impact everything from your profitability to your customer churn.
So whether you’re working with small businesses or enterprise clients, offering flexible pricing structures ensures your SaaS providers and resellers can scale efficiently. Let’s break down the four most common pricing models in white label SaaS.
Flat licensing fees
One of the most straightforward pricing approaches is the flat licensing fee. In this model, resellers pay a fixed monthly or annual cost to use and resell the software under their brand. The biggest advantage of this model is its predictability. Resellers will know exactly what they’re paying each month, and they have full control over how they set their prices.
Source: IXACT’s flat monthly pricing page
This model works particularly well for businesses that want to standardize their pricing without worrying about fluctuating costs tied to usage. However, for high-volume resellers, a fixed fee might feel restrictive if growth surpasses the initial pricing tiers.
Usage-based pricing
For resellers that are targeting businesses with fluctuating needs, usage-based pricing (UBP) options might be a better choice. This model ties costs to specific usage metrics like API calls, active users, or transactions.
The benefit of this model is that your resellers’ customers only pay for what they use, making it a great fit for companies with unpredictable or seasonal demand. However, a UBP pricing model requires companies to track these usage metrics in real time—both to prevent billing surprises and to help resellers plan their costs.
Source: A hypothetical example of usage-based pricing based on API calls in Togai
Fortunately, with a dedicated usage-based billing platform like Togai, you can effectively track these usage metrics and offer UBP to resellers as a white label service. You can even get started for free if you want to try Togai’s usage-based billing features firsthand.
Revenue-sharing agreements
In a revenue-sharing agreement, the white label vendor takes a percentage of the reseller’s revenue instead of charging a fixed fee.
This model is a win-win for both parties, meaning the white label service provider only makes money when the reseller does. It’s particularly attractive to resellers looking for low up-front costs, but it also means they have less control over their profit margins. Additionally, managing multiple revenue-sharing agreements can be complex and requires strong project management tools to track payments, commissions, and the overall performance of these services.
Tiered pricing structures
A tiered pricing model provides different pricing levels based on features, users, or usage. This allows resellers to start with a basic plan and upgrade as their business grows.
For example, a reseller might begin with a lower-tier package and add more advanced features—like automation, analytics, or project management tools—as their customer base expands. This approach is particularly effective for software development companies that want to encourage customer retention and long-term scalability.
Source: Docusign’s tiered pricing structures for their eSignature functionality
Strategies for customizing white label SaaS pricing
When you first decide to white label your SaaS, you may find early success by choosing a price point that puts you in the green and then offering your platform to resellers. But as your company grows, you’ll inevitably face increasing demand from a customer base that wants more pricing options that fit their specific needs.
So, how do you make your pricing make sense for both you and your resellers? Here are a few strategies you can use.
Reseller discounts and volume-based incentives
The key to pricing for white-label SaaS platforms is structuring it so that resellers have room to scale. This is why offering discounts isn’t just a cost-cutting tactic; they’re also an incentive for resellers to bring in and retain more customers. For example, when a reseller signs on more clients, they should see better margins. This happens because volume-based discounts reduce their per-unit costs as they onboard more customers, which will encourage them to promote your solution more aggressively.
Source: Folderly’s tiered pricing page with volume-based discounts
These kinds of volume-based pricing incentives are especially effective for resellers that have already established a large customer base. By offering these resellers bulk licensing options, white label providers make it easier for them to serve a larger customer base without inflating costs. This model works especially well in e-commerce, where reseller businesses are handling high transaction volumes and need predictable pricing.
Now, in the case that offering discounts isn’t an option, white label providers may also consider offering loyalty incentives like extended payments terms or access to advanced features at no cost. Not only will this help establish a long-term partnership between the white label provider and the reseller, but it gives the reseller the opportunity to continue building up a loyal customer base of their own.
Ultimately, the bigger the reseller’s customer base, the higher its profits—a win for both the reseller and the white label service provider.
Feature-based pricing
Not all resellers are going to need the same features. Fortunately, offering feature-based pricing will give your resellers the ability to tailor your white label offerings to their specific needs, allowing them to add or remove any features and functionality as needed.
This approach makes white label SaaS solutions more attractive and creates opportunities for the white label provider to offer upsells and encourage higher-value deals across different customer cohorts. For example, a digital agency might prioritize email marketing or social media management tools, but a B2B firm may need access to a custom CRM and analytics.
Whether it’s advanced automation, analytics, or integrations, giving them the ability to charge their customers’ extra for select marketing tools will make your white label SaaS more valuable.
Scaling your white label SaaS offering
Scaling a white label SaaS business isn’t much different from scaling a traditional software company. The one big—and potentially obvious—difference is that, instead of appealing to the needs of individual customers, you’ll need to cater to the needs of small businesses that are relying on your platform’s capabilities.
These are some of the ways you can think about growing your white label SaaS offering if you’re ready to scale.
Finding upselling opportunities
Scaling a white label SaaS business takes more than just acquiring more resellers. It is also important to help your resellers grow their own revenue streams. And one of the most effective ways to do this is by upselling. By offering your resellers additional features, integrations, and premium service offerings, you can help them increase their margins and provide more value to their customers at the same time.
Of course, there are more ways to upsell your customers than simply offering them more features. Beyond your software, white-glove services are another high-value upsell.
Offering premium support, dedicated account managers, or hands-on onboarding will make your SaaS solution much more attractive to businesses that need extra help. Not only can you charge a premium for these service offerings, but it’s one of the quickest ways to turn your customer success function into its own revenue stream.
Locking in multiyear commitments
Another way to think about scaling isn’t just about increasing your sales. You can also consider ways to guarantee revenue over a longer period of time. This could look like a three-month, six-month, or even an annual contract between your platform and the reseller.
Along with guaranteeing revenue for you, locking in these longer term deals also gives resellers peace of mind that they’ll have consistent, uninterrupted access to your SaaS for the duration of your contract. This is incredibly beneficial for white label providers as it reduces the risk of fluctuating revenue brought from shorter-term deals and provides predictable cash flow. Even better, you can use proof of this steady stream of revenue to raise capital, reinvest in your business, and potentially earn a higher valuation when you’re getting ready to exit.
Some resellers will see the immediate benefits of a long-term deal and have no problem committing. But for your more price-sensitive resellers, offering discounts on your multi-year agreements will make this an easier choice. You may also consider bundling in additional perks like premium management tools, extra templates, or early access to new features to sweeten the deal.
FAQs
What is white labeling in SaaS?
White-label SaaS products allow businesses to rebrand and resell an existing software solution as their own, eliminating the need for costly in-house development. Industries like marketing, finance, and customer support commonly use this approach and have various use cases tailored to different markets.
How much does a white label app cost?
The cost of white label apps varies based on the pricing model. Some providers charge a one-time fee, while others use a subscription-based approach. Factors like customization, integrations, and whether it includes a website builder, landing pages, or a mobile app will impact the overall pricing.
Is white label SaaS profitable?
White-labeling can be highly profitable, especially for small businesses and digital marketing agencies that want to offer SaaS solutions without building from scratch. The best white label strategies leverage flexible pricing and strong market demand to maximize profit margins.
What is the meaning of white label pricing?
White label pricing refers to the different ways SaaS software providers charge resellers, including flat licensing fees, revenue-sharing agreements, and per-user pricing. Some models also include API access and advanced software product features for more customized solutions.
