One Stop Voice announces its support of research provided by Point Topic that predicts the VoIP market to become a $40 billion industry by 2015. VoIP provides an easy and cost-effective way to exchange of voice and video over a single IP network, allowing better service at a minimum cost.
For this reason, the practice of white labeling or reselling VoIP services is also constantly growing. Despite the popularity of white labeled VoIP, One Stop Voice and other companies that provide hosted VoIP services are encouraging companies to consider the hidden risks of white label VoIP by taking a "buyer beware" approach.
"Companies are easily tempted to resell white label VoIP because they are led to believe that this will help them to remain competitive and retain customers," says One Stop Voice CEO Joshua Simon. "While a quicker way to offer VoIP may seem attractive, company managers have to realize that there are other critical and key factors to consider before jumping in the wagon of white label VoIP."
Most common white labeling risks include:
- Service to the client runs the risk of being compromised. The distributor is at a disadvantage in order to effectively adapt a product or service to meet specific needs of an existing customer. Instead of retaining the customer, a company can be found at greater risk of losing service due to the lack of flexibility and potentially inappropriate practices.
- Lack of control. When problems arise, companies want to offer their customers with immediate answers. White labeling may confuse protocols, leaving everyone wondering who to call first. It may be clear who is ultimately responsible to correct changes and implement the necessary improvements. This is often the ball that passed.
- Inconsistencies can surface. That a third party presents an increased risk of inconsistencies and can complicate rather than improving the customer experience. Companies need to anticipate and prepare for inconsistencies that the client may experience due to white labeling.
- Hidden costs can replace financial gains. The hidden costs are common with white labeled VoIP. Sales hours often get replaced by hours devoted to the resolution of problems and technical support.
- Consider the attached legal responsibility. Most associations entail legal responsibilities and white label partnerships are no exception. Companies can be found at risk for violating its contractual obligations, if the partner does not hold his end of the agreement. Ultimately own company carries the legal and financial risk.