If you run a digital agency, at some point you’ve likely felt frustrated by your inability to expand your business because of a lack of expertise in different areas, such as SEO or advertising. But that doesn’t have to stop you.
Hiring another expert for your team isn’t the only way to fill the gaps of your agency’s expertise. You can also use white label companies to get the work done. White label companies are those that offer their expertise and services to other companies in exchange for payment, but they don’t receive any of the credit. In other words, your clients will never know you used a white label company because the white label service’s work will be branded as your own. The anonymous work of these white label services can provide several benefits to a digital agency, five of which are listed below.
It’s cost effective.
While hiring another company doesn’t sound cheap, it actually can be. Using a white label company allows you to utilize additional expertise on a short term, per-project basis, which gives you the flexibility to take on a wide range of projects anytime without paying a large full time staff. Speaking of staffing, using a white label company also saves on costs from the recruitment and the hiring process, plus costs from onboarding and benefits. If you have concerns about your cash flow, using white label companies can minimize your operating costs and help maintain your agency’s flexibility.
You have control.
While collaborating remotely with a white label company on a client’s project can sound like it will produce an inferior final product, in today’s world it’s entirely possible to work remotely without any loss of quality and efficiency. This is due to the breadth of modern communication tools and the usage of advanced tactics for remote teams that help people collaborate all over the world. In terms of working with white label businesses, you’ll be able to control the specifications and the final product. If you’re a good communicator, there will be no loss in translation between your clients’ wants and what you relay to the white label company.
Outsourcing allows you to focus on what you do best.
Expanding your agency’s skillset is time-consuming, and if you choose to expand into new areas, you’ll experience growing pains as you explore the new focuses in your business. Rather than giving your clients an unreliable experience or telling them you can’t provide a full service operation, you should pass off the tasks that are not your strong suit to a white label company.
This ensures that the end product will be high quality while allowing you to focus on providing the quality product your agency has already been working on without additional distractions. Guaranteeing high quality by allowing your agency to focus exclusively on their skillset will help strengthen your brand and build client loyalty.
More clients will hire you.
If you offer more services, more clients will hire you. It’s as simple as that. If your digital agency offers web design, but lacks SEO and advertising expertise, clients may take their business elsewhere in order to find an agency that can provide all three. Not only are clients more satisfied with all-in-one services that save them the stress and hassle of finding more companies and experts, but around 20% of companies are already outsourcing technical digital expertise like paid search and display advertising while maintaining simpler functions like email and social media in-house. If you want to attract those clients, you have to offer the technical services they are looking for.
White label services are useful in the long term.
As your reputation and portfolio grow through the use of white label companies, so too will your revenue. This additional revenue will allow your agency to increase its advertising and reach in order to land bigger clients and better projects. Your employees will continue utilizing the skills they know best and have opportunities for professional development as they take on more challenging problems. If your goal is to remain a smaller boutique agency, white label companies are a great way to keep a smaller size while offering a wide variety of expertise.
Regardless of the size of your digital agency, white label companies can be an effective way to expand your revenue and business. Even if you already offer the service in question, white label businesses can still help your agency by preventing any business bottleneck problems. Using a white label service can help you get your foot in the door to long term business relationships by providing the expertise your agency currently lacks, preventing bottlenecks, and earning you the revenue you need to get noticed.