Building AI services is great. Building AI products is better. Through developing Altorch (AI voice agent platform) and TherapyMate (mental health AI), we discovered a more scalable business model: white-label licensing. Instead of custom building for each client, we build once and license to multiple organizations. This approach has generated $500K+ in annual recurring revenue with dramatically better unit economics.
This isn't theoretical—these are real numbers from production systems. Altorch is licensed to agencies running AI calling campaigns. TherapyMate is deployed by healthcare networks providing mental health services. Here's exactly how we built these products, structured licensing deals, and grew revenue.
The Product vs Services Business Model
Services model (where most AI agencies start): Build custom solutions for each client. Revenue: $50K-200K per project. Margin: 40-60%. Scalability: Linear—more projects require more developers. Timeline: 2-4 months per client.
Product model (where smart agencies move): Build once, license many times. Revenue: $15K-75K per license + monthly/usage fees. Margin: 80-90% after initial build. Scalability: Exponential—same product serves 10+ clients. Timeline: Onboard new clients in 2-4 weeks.
Revenue growth trajectory from white-label AI product licensing
Case Study: Altorch Voice AI Platform
The Product: AI voice agent platform that makes automated sales calls. Features campaign management, lead scoring, pipeline tracking, and team collaboration. Built with Next.js 15 + FastAPI + PostgreSQL + VAPI.ai integration.
Initial Investment: $25K development + 1,200 hours over 10 weeks. Production-ready MVP with 78% feature completion and 144 automated tests.
Licensing Model: $25K-35K one-time white-label fee + $200-500/month per deployment. Agencies license once and deploy for 50+ clients at $499/month each. One agency customer generates $24,950/month from their $25K investment ($299K annual run-rate).
Altorch Financial Model
How to Build White-Label AI Products
Identify High-Value Use Cases
Look for problems affecting many businesses in similar ways. Voice agents for sales, chatbots for customer service, transcription for documentation—these are horizontal solutions with broad market appeal.
Build Multi-Tenant Architecture
From day one, design for multiple customers. Tenant isolation, branded UIs, configurable workflows. Don't rebuild for each client—parameterize and configure.
Create Licensing Tiers
Base license ($15K-25K), custom branding (+$5K-10K), additional integrations (+$3K-10K each), enterprise SLA (+$10K-20K). This tiered structure maximizes revenue per customer.
Want to Build Your Own AI Product?
Zaltech AI helps companies transform from services to products. We handle everything from product architecture to licensing strategy, ensuring your AI product is built for scale and profitability.
Schedule a product strategy session to explore white-label opportunities.