White label services are the hidden backbone of the digital industry.
As web development techniques and digital marketing strategies evolve faster than ever, these white label services exist to keep clients stay up-to-date and relevant to the changing trend.
If you are running a digital agency, you would have already heard about white label services. But have you considered utilizing it as a part of your business plan?
In this blog, we will explain why you need to consider hiring a white label agency to skyrocket the growth of your company.
What is White Label Services?
White label refers to a service that is developed by one company but sold by another company or brand. The reseller can customize the developed service with their own brand, logo and identity.
For example, Company A develops the website and Company B buys it. Here, Company A does not associate its brand with the website that it developed. On the other hand, Company B gets full freedom to use its own brand, logo and identity with the website developed by Company A.
Some of the widely used white label services related to agencies include:
- Web design & development
- Web app development
- E-commerce web design, development and management
- Search engine optimization (SEO)
- Email marketing
- Social media marketing & management
- Pay-per-click management
- Content development
- Conversion rate optimization (CRO)
We have written a detailed blog on the importance of white label services. Do take a look if you like to learn more.
What Are the Benefits of White Label Services?
Here are some benefits of white label services.
Get more freedom
By investing in white label services, you can concentrate on what your business and team are good at and not on areas you have too little experience in
Save time and money
Investing in an existing white label solution will save you time and free you from the hassle of searching for resources
Add new revenue stream
One of the biggest benefits of white labeling is the option to offer new services to your customers and improve your revenue stream
Small businesses can compete with large businesses
Traditionally, small businesses find it difficult to compete with large businesses because they don’t have the manpower to offer all the services. White labeling can solve this problem
Align your services with the needs of your customers
By opting for white label services, you will have control over how you market yourself and add the services your clients are searching for
Improve client retention
With white labeling services, you get a one-stop solution provider who will help to meet all your needs. This will help to foster brand loyalty from your clients
How Can Businesses Benefit From White Label Services?
White label services work well for any business from marketing agencies, salespersons, web hosting providers to influencers. However, agencies dealing with WordPress plugins, and WordPress themes can truly benefit from white label services.
Here are some of the benefits that small, medium and enterprise-level companies get from white label services.
Benefits of White Label Services for Small Business
- No problem with initial kickstart
- Improve ROI
- Show a power-packed portfolio to clients
- No hassle of finding resources
- Quick way of branding
- Focus on sales
- Offer end-to-end solutions to clients
- Execution ready and budget-friendly
- Improve customer Retention
Benefits of White Label Services for Medium and Enterprise Level Business
- Reduce responsibility of handling resources/hiring
- Increase ROI
- No worry about work fluctuations
- Transfer accountability
- Focus on other verticals
What Are the Types of White Label Partnerships?
Closed white label
In this type, you will have one contract with the client and another contract with the white label agency. In the end, the white label agency will send you a bill and you will bill your client. Throughout the process, your client will never know that a white label agency exists in the background
Open white label
In this type, you will have one contract with the client and another contract with the white label agency. The client will know that the white label agency exists because it will act as a part of your in-house team. You will manage the project and the white label company will take directions from you. In the end, the white label agency will send you a bill and you will bill your client
In this type, you will have a contract with your client and the white label agency will also have a contract with your client. Both will be in touch with the end client and also be in touch together to make the project a success. You may get a referral fee from the white label company depending on the project size
What Are the Different Types of White Label Pricing Models?
Fixed price model
In this type, you will send the project requirements and the white label company will review the requirements and send a detailed proposal along with timelines, deliverables and a fixed price
Ad-hoc based model
In this type, you will schedule a call to explain the types of tasks that the white label company can expect. Then, you will use project management tools such as Basecamp, Asana or Trello to assign tasks. The white label company will record the hours spent on each task and bill you on a monthly basis
Hiring a dedicated resource
In this type, you will interview a candidate from the white label company and hire them for part-time or full-time. Even here, you will be using project management tools such as Basecamp, Asana or Trello to assign tasks. You will be paying a fixed cost for each resource you hire.
How to Choose a White Label Partner?
Always make a point to choose a white label partner who has a vision of offering solid services. Such a partner will help you sell your services easily. Interviewing the company properly is the key to choosing the right white label digital agency
Make sure the company you choose has a good reputation and track record. The partner you choose must have good white label experience and have the ability to offer excellent services and support.
Once you are satisfied with the interview process, test drive their services upfront. This will help you learn how well they respect the contract terms and how they do a particular work
What Are the Benefits of Hiring a White Label Agency Over a Freelancer?
The agency vs freelancer dilemma is not something new. It has been there for quite a while. With the easy accessibility of talent, it must be hard to make a decision. But, everything boils down to what you want to achieve and how you plan to do it.
We have written a detailed blog about the agency vs. freelancer conundrum. In the blog, we have covered everything from pros, cons, ratings and more. You can use the guide to make your decision. The one difference is, a normal agency can show in their portfolio that you are their client but a white label agency cannot. Other than that, all the points we have covered under agency will be applicable to the white label scenario too.
What Should You Include in Your White Label Services Agreement?
These are some of the points that must be covered in your white label services agreement.
- Must have a non-solicitation clause which will prohibit the white label agency to work directly with your clients
- Must have a scope of management that outlines person in charge, deliverables, the scope of the project, what happens if the project goes beyond scope, budget and more
- Must define the level of your expectations out of the partnership
- Must have points on what will happen if your clients kill the project before it’s completed and compensation details
Must have privacy clauses so that your sensitive data will be protected