Every digital marketing agency wants to run its online business efficiently and competently, irrespective of whether it’s about clients’ projects or internal processes. If you’re an agency owner, one of your biggest goals is to develop loyal and trustful relationships with your clients.
But have you ever been in a situation where you had to turn down a good business deal from an important client because you didn’t have the time, budget or in-house capabilities for it? If you’ve answered yes, you need to know a thing or two about white label branding.
What does the term ‘white label’ mean?
The phrase ‘white label’ actually has its origins in the music industry, particularly with vinyl records. Prior to music records being released to the populace, record labels would distribute promotional copies to DJs, music distributors and radio stations, who would then conceal the original labels with white labels. The reason why original labels were concealed was to prevent competitors from recognizing the source of the new music being played.
Today, this phrase is not exclusive to the music industry as it has found its way to the commerce and marketing industries. In the world of digital marketing, ‘white label branding’ is a phrase that’s used when:
- A marketing agency is hired to provide marketing solutions by their client(s),
- The agency then outsources those services to an external team,
- The agency then rebrands the end product to make it appear as if they created those solutions,
- The agency then resells those solutions to their client(s).
As a digital marketing agency, there are probably small and medium businesses that look to you to assist them with their digital marketing needs. If you don’t have a variety of managed digital marketing services, you can outsource those services to another company. The content creators and marketing strategists from that company can work alongside your sales team to deliver top notch marketing services that you can then pass on to your clients under your brand name.
Benefits of White Label Branding
It scales your services portfolio
The biggest benefit of white label branding is that it gives digital marketing agencies an easy way to expand their service offerings to their clients without necessarily developing the solutions themselves. By outsourcing services to a white label company, you are able to provide your esteemed clients with a much broad range of services. What’s more is that you sell those services with your branding, while taking full credit for them.
It enhances your service quality
One marketing agency cannot be great at everything. For those areas you aren’t good at, you can hire industry experts that are well-suited for each type of your clients’ projects. The beauty of outsourcing to a white label company is that your clients will not even recognize the involvement of a 3rd party. Since you’ll be taking credit for the services rendered, your clients will presume that you are offering top-notch marketing services on all fronts.
It improves your brand’s image
When using the services of a white label marketing company, you will never have to say no to any of the projects present to you due to your team’s inability to execute them. You will always be able to deliver high-quality services every time, which will enable you to build a good reputation for your brand.
It helps you attract more clients
With more service offerings under your brand, the more clients you will be able to pitch your digital marketing services to. If you have an industry reputation for offering a wide range of high quality services, the easier it will be for you to attract more clients. This means that your agency will become a one-stop marketing solution that your clients can always look for whenever they have marketing needs that need to be met.
It helps you retain clients
In the unfortunate event that you are unable to deliver add-on services that your clients may be looking for, chances are that they may look into other digital marketing agencies that can. Liaising with a white label services provider can help to prevent this from happening. By outsourcing the services that your in-house team can’t handle, you will still be able to provide end-to-end digital marketing services efficiently and consistently.
It helps you boost your revenue
With a white label company handling the service delivery aspect, there is absolutely no limit to the quantity and quality of services that you can deliver. The more services you get to offer, the more you get to earn. You can sustain healthy profit margins by reselling the digital marketing services at a markup.
It minimizes costs
Outsourcing digital marketing services to a white label marketing company helps you avoid the costs that are associated with maintaining an in-house team of digital marketing experts on a full-time basis. These costs include overhead costs, salaries and benefits for full-time employees, and training costs for equipping your in-house team with skills required to offer specialized marketing services. If you do not want to waste your time and precious internal resources in areas that can take years for your team to become proficient in, then white labeling is the way to go.
Difference between White Labeling and Private Labeling
It’s common for the terms ‘white labeling’ and ‘private labeling’ to be used interchangeably to refer to instances where a manufacturer creates a basic generic product or service, then distributes it to multiple retailers, who then resell the same product under their respective brand names. These two phrases are perhaps two of the most often confused and misused phrases in digital marketing. While they both describe products that are bought, rebranded and resold by a reseller, there are subtle differences between the two strategies.
The first difference is that with white labeling, the same product can be distributed to multiple resellers, who then rebrand the product and resell it under their respective brand name. With private labeling, the product is distributed to a single reseller, who then rebrands and resells the product under its brand name. So, white labeling is about selling a product to multiple resellers, while private labeling is about selling a product to only one reseller.
The second difference is that with white labeling, the multiple resellers get to rebrand and resell the product as it is. This means that resellers only rebrand the product, but they do not get to modify it. With private labeling, on the other hand, the product is distributed to a single reseller, who not only rebrands it, but also modifies it and resells it under its brand’s name. So, white labeling is about reselling a product as it is, while private labeling is reselling a product after modifying it to fit specific requirements.
White label branding presents many incredible benefits, particularly for small and medium-sized digital marketing agencies. Do you have a small business that can’t provide add-on services to your clients because you have limited service offerings? Outsourcing the services that you can’t currently offer to a white label services provider might just be the push that your small agency needs to grow.