LA audio engineer Noah Carmichael wanted more. Tired of selling his time for money by manually mixing songs, he started looking for more passive income streams. He saw how profitable software businesses are, but didn’t know how to code.
That’s when Noah found out about white label music software! It appeared like a magic solution that would print money, but he hadn’t considered the risks…
A software is a “white label” if others can brand it as their own and resell it. The name “white label” comes from factories slapping a literal white label on a physical good, that another brand can put their logo on. Noah realized he could rebrand and sell music software that others have already built. On Google, he sees multiple software’s that he could resell as his own:
Noah’s eyes lit up with benefits:
Despite the benefits, Noah took serious risks by choosing to white label Stemmer’s AI mastering web service, including:
By whitelabeling Stemmer’s AI mastering, Noah is unable to code features himself. If he wants any changes, he has to ask their CEO and hopes that they build it. Fortunately, this risk is minor since Stemmer is a small company. Here is a list of features built specifically at Noah's request:
However, Stemmer has not completed all of his feature requests. For example, we haven’t enabled the checkout to accept cryptocurrencies. If Noah built the AI mastering himself, he’d have complete control. Fortunately, Stemmer’s small size enables us to prioritize his needs.
Tech savvy users of white labeled web applications are able to inspect the code and identify who the host company of the software. Then they could go directly to the source in search of cheaper rates for the service. This risk is inherent and unavoidable. Fortunately, most music artists don’t know how to code.
Noah offered the whitelabeled AI mastering in addition to his manual mixing. There was a risk that this would cause a drop in his mixing sales, but it didn’t. In fact, Noah captures many leads from the AI mastering which he upsells to his manual mixing service.
Host companies of white label software can view all of the data in use. They can see all of your users, and store that data. Fortunately, Noah didn’t have high risk of this because Stemmer’s terms mandate that Stemmer will not use any of Noah’s user data without explicit permission.
Once somebody builds their business with a white labeled music software, their entire business is dependent on the host company. What if the host company raises their rates, or goes out of business? This is a serious risk. Thankfully, this risk is mild for Noah. First of all, he keeps all data about his users and could import their contact info if he ever wanted to switch solutions. Additionally, if his mastering business got large enough, he could hire a software developer to build his own AI mastering. Finally, Stemmer’s CEO regularly checks in with Noah to ensure the pricing is affordable.
Despite risks, Noah chose to whitelabel Stemmer’s AI mastering. He launched a site called AIMixingmastering.com, and sold the AI mastering in addition to his manual mixing. Those two services feed into each other. Noah used the AI mastering to show free previews in exchange for contact info. Then, whether the artists like the AI master enough to purchase it or not, Noah had a funnel in play to upsell them to his high-ticket mixing service.
Launched on November 23rd 2023, Noah used Stemmer’s white label AI mastering to print $10,000 in sales, and grow his email list from 900 artists to 10,000 artists in just 10 months!
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