What is a White Label Partnership?
If you are looking to scale your business but don’t have the budget or resources to expand your current services offering, a white label partnership may just be what the doctor ordered.
To make sure your new white label partnership gets off to a smooth start, here we:
- define what a white label partnership is,
- breakdown the benefits and potential downsides of white label partnerships,
- and run you through what a reputable white label partner should and shouldn’t offer your agency.
What Is a White Label Partnership?
A white label partnership is an agreement between two companies in which one company — the service provider — produces a product or service on behalf of another company, the reseller.
The reseller purchases the white label product from the service provider, rebrands it with their own company name and logo, and then sells it to their own clients.
Resellers use white label services in many industries.
For example, it’s not uncommon for manufacturing, software development, and marketing agencies to outsource the production of the products and services they sell to a white label service provider.
5 White Label Partnership Benefits
A partnership with the right white label service provider has many potential benefits for your agency.
Here’s a look at the most notable benefits of white label partnerships:
1. Increase Potential for Growth
White label partners already possess the knowledge, resources, and staff needed to roll out a product or service with little effort or expenditure on your behalf.
This will allow you to expand your agency’s existing service offerings, appeal to a wider range of customers, and, subsequently, scale your agency more efficiently than if you provided these same services in-house.
2. Avoid Unnecessary Overhead Costs
Traditionally, if you were to expand your product range or service offerings, you’d be forced to hire new staff or train existing staff members, rent or buy additional office space, and take on further costs associated with offering in-house services.
But with the help of a white label partner, your agency will avoid taking on every single one of these overhead costs.
3. Reduce Risk
Because you’ll avoid the overhead costs and investment required to expand your service offerings, your digital marketing agency won’t inherit the level of risk it typically would to expand your service offerings.
4. Access to Experts
Working alongside a white label partner allows you to leverage the expertise of experienced professionals and industry specialists, saving you and your team the hassle and time to become proficient in these skills yourself.
5. Appeal to a Larger Audience
Partnering with a white label service provider allows your agency to tap into new markets and reach more customers. This will increase your sales, widen your agency’s market reach, and boost revenue growth.
3 Potential White Label Partnership Downsides (+ Solutions)
To be sure you know exactly what you are getting into, let’s break down the potential drawbacks of a white label partnership.
Let’s look at these in a bit more detail:
1. Lack of Communication
As a white label provider won’t be working directly with your clients.
Instead, you’ll be working alongside your agency’s team, they may not be completely clear about how to best serve the needs of your customers.
2. Concerns Around Data Security
Whether unintentional or through a nefarious act, using a third-party white label partner has the potential to expose your clients’ sensitive and confidential information.
3. Disconnect Between Client Expectations and Delivered Results
A white label partnership can be risky. If the terms of the agreement are not met, or if the product fails to meet customer expectations, it could damage both the reputation of your agency and your bottom line.
5 Signs You’ve Found the Right White Label Partner
To be sure you’ve found a white label partner that meets your expectations, be sure to look out for these characteristics.
Let’s look at these in a more detail:
1. Open and Clear Communication
An effective white label partner will have excellent communication skills. They will keep you updated on the progress of your clients’ projects and answer questions or concerns you may have along the way. A suitable partner will also be transparent about their pricing and turnaround times so that there are no unpleasant surprises.
2. Expert-Level Execution
The right white label partner for you will execute projects with expert-level precision. This means they will handle all aspects of the project from start to finish in a timely manner.
3. Commitment to Quality
A reputable white label partner will have high standards for the products they provide your agency and will be constantly working to improve their processes. They should also be open to feedback from yourself and your team, and be willing to make changes based on that feedback.
4. Relevant Specializations
A white label partner that’s committed to providing expert solutions will possess specialties and expertise in the areas that are most relevant to your clients’ needs. This way, you can be sure that they’ll be able to provide the best possible service and deliver the results your clients are looking for.
5. Demonstrable Experience
A high-quality white label partner will possess a complete portfolio laden with customer testimonials and positive reviews. This will ensure prospective white label service providers will have a proven track record of success, have the relevant set of skills necessary to tackle your clients’ needs, and have a solid understanding of your industry and target market.
White Label Partnership Red Flags
To be sure your potential partners meet your agency’s needs, be aware of these white label partner red flags.
1. Inflexible Processes
While it’s good to know a potential white label partner has developed a tried-and-true method of delivering results, they still need to maintain a reasonable amount of flexibility. After all, every agency and every customer base, yours included, is unique. So a white label partner that lacks the ability to compromise may be a sign you should look elsewhere.
2. Lack of Discretion
White label means white label. In other words, if you’ve entered a white label agreement, your agency’s name should be the only branding on the final products and services you deliver to your clients. This means any marketing material, documentation, or physical products that’s intended for your customers’ eyes should be delivered unbranded and ready for your agency’s name and logo.
3. Shortage of Questions
You’ll no doubt have plenty of questions to ask a prospective white label partner. The same goes for them — they should also have plenty of questions for you, too.
If a white label service provider isn’t asking questions about your agency, your target audience, and both yourself and your customers’ expectations, there’s a level of assumption on their behalf that may lead to a white label partner delivering subpar results.
The right white label provider will offer your agency turnkey solutions that include everything from product development to fulfillment, allowing you to focus on your business’ core competencies.
And that’s exactly what we offer here at Loganix: red flag-free, unbranded, high-quality white label services that you and your clients can rely on.
From search engine optimization (SEO), pay-per-click (PPC) advertising, link building, and much more, our white label services provide a comprehensive and cost-effective solution for businesses, like yours, looking to outsource their digital marketing needs.
To learn more, check out our full range of digital marketing services here.