Digital marketing is an extremely broad term that covers a myriad of smaller marketing categories and niches within it. Anyone who claims to be an all-knowing digital marketing guru is lying.
This is why so many digital marketing agencies struggle to become a one-stop-shop for all digital marketing services. Even the ones who claim to be often fail to deliver on that promise.
Have you ever been in a situation where an important client asked you to do something and you had to say no because you didn’t have in-house capabilities for it?
Or have you tried to provide add-on services to your clients or tried to expand your portfolio and faced a few initial setbacks?
Or do you have a small business that has been struggling to compete with larger agencies because you have limited service offerings?
If your answer is yes to any of these questions, then white label marketing is what you need.
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What is White Label Marketing?
White label marketing services are essentially fulfillment services where the work for one company’s (company A) clients is done by another company (company B).
In this case, company B, which actuals provides the services, does not get the credit for it. Instead, company A takes the credit for those services and resells them to their clients under their own brand name.
How Does it Work?
Let’s say that company A is an end-to-end digital marketing services provider and has numerous clients that require different kinds of specialized services. Instead of hiring a full-time, in-house team for each kind of specialized service, they outsource some of their work.
In such cases, company A will provide certain specialized services to their clients under their own brand name, but the actual work is done by company B.
7 Reasons to Use White Label Marketing
White label marketing provides a plethora of benefits, especially for full-service marketing agencies. Let’s take a look at some of the key reasons why you should consider white label marketing:
1. White Label Marketing Can Scale Your Services Portfolio
The first and foremost benefit of using white label marketing services is to broaden your offerings. You don’t need to specialize in each and every service that you offer. And you can provide a much broad range of services by outsourcing them to a white label service provider.
What’s more? You can sell those services with your branding and can take full credit for them.
This strategy can help you pitch a number of services to your clients, without worrying about whether your in-house team is capable of delivering those services.
2. It Can Help You Reduce Costs
By outsourcing services to a white label marketing services provider, you can avoid maintaining an in-house team of specialists on a full-time basis.
The expenses that you can avoid by hiring a white label services provider include:
- Salaries and benefits for full-time employees
- Overhead costs
- Training costs for training your in-house team on various specialized marketing services
While that may not seem like much, if you take a closer look, you will realize how much you can actually save.
For example, let’s say that you offer content marketing as one of your service offerings. Let’s compare the costs of maintaining an in-house content team versus hiring a white label content marketing service provider.
For an in-house team, you will need one content writer/editor and one content manager/strategist at the very least. According to Glassdoor, the average annual salaries for a content writer and content manager are $54k and $77k, respectively. So the minimum total cost for an in-house team will be $131k annually.
Now let’s assume that a team with one writer can produce a maximum of 30, 1000-word content pieces per month.
If we compare that to the pricing for the same amount of content produced by an end-to-end content services provider like Verblio, it comes to around $84k annually.
That is a huge difference of $47k per year. And if we also account for the fact that the in-house team might not be 100% utilized all year round, then it will be a much bigger difference.
3. It Can Help You Get Additional Revenue Sources
Each additional service that you offer to your clients can generate an incremental revenue stream for your company. And with a third-party service provider taking care of the service delivery aspect, there is no limit to how many additional services that you can provide.
The key, obviously, is to resell these services at a markup, so that you maintain healthy profit margins.
4. It Can Help You Improve Client Retention
With a third-party provider taking the responsibility for service delivery, you can focus all of your time and effort on client relationship management.
Additionally, you can act as a one-stop marketing solutions partner for your clients and help them meet all of their marketing needs. Every time your clients come to you with a request, you won’t have to say no to them just because you don’t have the capabilities in-house.
By being able to provide end-to-end marketing services, effectively and consistently, you can foster brand loyalty from your clients.
5. It Helps Improve Your Service Quality
With white label marketing services, you can have industry experts and specialists running your clients’ marketing campaigns. One company cannot be great at everything. To solve that problem, you can hire specialists well-suited for each type of your clients’ projects.
For instance, let’s assume that you specialize in influencer and social media marketing, but also want to offer SEO services to your clients. But, instead of trying to train your employees to do SEO or hiring SEO experts every time there is a requirement, you outsource it. You hire a white label SEO service provider who has a team of SEO experts, who can deliver high-quality SEO services to your clients.
Since the client does not know about the involvement of a third-party provider, they will assume that you are delivering high-quality services on all fronts.
6. It Will Help You Improve Your Brand’s Image
Using white label marketing services, you can ensure that you deliver on your promises to your clients and build a good reputation in the industry. By being able to provide a broad range of services, you can position yourself to be the go-to agency for all digital marketing services.
7. It Can Help You Attract More Clients
All of the factors mentioned above will, ultimately, help you attract more clients. The more service offerings that you have, the more clients you can pitch your services to. If you have an industry reputation for providing high-quality service, it will be easier for you to attract clients.
Also, with someone taking on the responsibilities of service fulfillment, you will have more time to prepare your pitches. You can invest more time and effort into trying to bring in new clients, instead of worrying about day-to-day service fulfillment tasks.
White label marketing services provide numerous benefits, especially for small agencies. Using white label marketing services might just be the push that your small agency needed to grow.
Have you ever tried using white label marketing services for your agency? Share your experience in the comments below.