Even if you’ve never heard the term “white-label” before, you likely come into contact with white-label products every day. From generic branded items at the supermarket to ghost-written blog content, these days there are white-label partners for everything. But what exactly is a white-label partner?
What is a White-Label Partner?
A white-label partner provides a good or a service and replaces their own branding with that of the customer. In other words, white-label partners do the work behind the scenes but allow another company to take all the credit. This is the main difference between a white-label partnership and outsourcing or subcontracting your work: white-label partners operate behind the scenes.
How White-Label Services Work
White-label product manufacturing is simple: one company makes a product and places another’s brand on the finished product. However, when it comes to white-label services, things get a bit trickier. Let’s consider a hypothetical scenario: Chitown Marketing, Bob’s HVAC, and WhiteLabelGenius.
Chitown Marketing wants to offer SEO services, but no one on their team has the necessary training or expertise. They’re at operational capacity and, unfortunately, don’t have the budget to hire new talent and expand their team. After a few conversations and reading great reviews on Google, they decide to partner with a company called WhiteLabelGenius that provides white-label SEO services.
WhiteLabelGenius and Chitown Marketing come to a service agreement and the Chitown Marketing sales team begins to sell WhiteLabelGenius’s packages. Bob’s HVAC has been a long-time client of Chitown Marketing and wants to grow their web presence. They decide to purchase an SEO package.
Once Chitown Marketing closes the deal, the team gathers the relevant information from Bob’s HVAC and communicates everything to the team at WhiteLabelGenius. As progress is made on each step of the SEO campaign, WhiteLabelGenius reports to Chitown Marketing and provides branded deliverables for them to send to Bob’s HVAC.
At the end of the day, everyone is happy: Chitown Marketing expands their services and increases revenue, Bob’s HVAC receives expert SEO work and most likely an increase in lead generation, and WhiteLabelGenius collects has a new customer.
When Should You Consider a White-Label Partner?
Depending on your business goals, there are a number of reasons why you may consider hiring a white-label partner.
Expand Your Service Offerings
One of the most common—and most obvious—reasons that marketing service providers choose to bring on a white-label partner is to expand their service offerings. Digital marketing is a vast and varied industry with new specialties being born all the time. In order to reach the largest audience of potential customers and promote credibility, it’s essential that marketing businesses offer the latest and most effective services. A white-label partner gives companies instant access to a team of experienced subject-matter experts, allowing you to differentiate yourself, focus on closing more deals and keep your customers happy.
Hiring new talent is surprisingly difficult and expensive. New marketing companies pop up every day and, while there is certainly no shortage of potential candidates, finding quality talent with the relevant experience can feel like an uphill battle. Not only is hiring an added expense but training can take valuable time away from other opportunities. Bringing on a white-label partner allows companies to test the waters before fully investing in a new service offering.
Focus on What You Do Best & Reduce Costs
A white-label partnership saves you time, not only by allowing you to go directly to market with a new service offering, but also by freeing up your existing team members to focus on what they do best. Click To Tweet
A white-label partnership saves you time, not only by allowing you to go directly to market with a new service offering, but also by freeing up your existing team members to focus on what they do best. Making the decision to bring on a white-label partner means admitting that your team can’t be the best at everything; let the experts provide top quality service to your clients while you reap the praise and reward. Focusing your team’s efforts on your core service offerings increases quality, leaves more time for building strong client relationships, and keeps your overhead low.
Proactively Reduce Churn
Every marketing provider knows it’s easier to lose a client than it is to gain one. The gig economy has made consumers accustomed to bouncing between providers and more likely to seek out short-term contracts. Not only does a white-label partnership instantly expand your service offerings by supplying you with an external team of experts, but it also allows you to offer your clients additional services after the initial close. The best marketing campaigns are comprehensive, strategic, and omnichannel. By staying one step ahead of your clients’ needs, you build a trustworthy and credible reputation and extend the lifetime value of your customers.
In addition, delegating work to a team of experts means that you’ll always be able to provide the highest quality results. White-label partnerships should include a detailed service level agreement (SLA) that outlines exactly what both sides should expect, project deadlines, and a communication schedule. This allows you to provide transparent deadlines to your clients, knowing confidently that the work will be done on time and to the highest standards. Protecting yourself against churn at all stages of the sales cycle is key if you hope to achieve sustainable growth, and white-label partnerships arm you with the necessary resources to combat churn proactively, rather than reactively.
White-label partnerships are inherently scalable. Reaching operational capacity is one of the easiest ways to cause your growth to plateau, and as discussed previously, solving this problem on your own isn’t as simple or cost-effective as it might seem. Researching and developing a new service offering, hiring and training new team members, purchasing and configuring the necessary tools and software…the potential costs add up faster than you might think.
White-label services are purpose-built to alleviate operational stress and get you back to growing your core business. By freeing you from the burden of hiring new talent and reducing your overhead, the right white-label partnership will act as a catalyst for growth, enabling you to scale your business with ease. You find clients and close deals, while your partner worries about fulfilling what you sell, even if that means growing their team or investing in additional tools.
Choosing a Reputable White-Label Partner
Once you’ve decided to invest in a white-label partner, it’s important to choose a partner that is reputable and aligns with your service needs. UpCity has been providing quality white-label services for over half a decade to marketing providers around the globe. Available to all UpCity Certified Partners, our comprehensive white-label offerings include the latest in SEO, PPC, social media, content marketing, and reputation management. Learn more about how UpCity’s White-Label Services can help you grow your business today!