The need for a digital marketing agency that can do it all is ever increasing. But the number of agencies that can fulfill client requirements still don’t meet the demands.
And white label agencies fill these gaps perfectly.
A white label partnership is a legal way to take services from a brand and rebrand it as your own. The advantages are aplenty. Let’s discuss.
Why work with a White Label Agency?
Every big brand likes working with white label agencies. Why? Because with low effort and principle, they can get a high profit. Let’s break it down.
1. Increase your service catalog
Let’s consider your brand is a digital marketing agency. You may have 5 services – content writing, SEO, social media marketing, link building, and email outreach.
Your client may need all of these services plus 2 more. Now, you have two options: hire employees who can fulfill your needs. Or turn to a white label agency.
But there isn’t a guarantee that the two extra hires will have sustained work. So you’ll essentially be paying them for nothing.
However, a white label agency can stay on your team just for the duration of the project. Then you can go back to being strangers.
The average salary of an SEM Specialist is $3,980/month in the U.S.
White label hiring starts for as low as $600/month. The cost changes based on the service and the seniority level of the talent.
So even if we take $1,000 to be the basic price, then that’s still around $3,000 saved.
2. Access to a wider pool of talent
White label agencies usually have no borders. You can hire talent from across the world if you think they can do the job better.
The services you need, like web designing, are often cheaper in certain locations. So you will be able to save by picking agencies located in a cheaper area.
White label agencies usually go through a lot of effort to vet and hire talented employees. Since you won’t have to go through the process of screening them, it’s another way to profit.
The salary for a mid-level digital marketer is $4,212/month in the U.S.
In countries like India, you can hire graphic designers with the same experience for as low as $400. And if you hire from a white label agency, the cost would be even lower.
So on average, you can save about $3,000 for this position.
3. Fewer business expenses, more time for development
You would typically turn to a white label agency because your team does not have the talent the client needs.
You can also choose to hire an in-house employee or train an existing person. But both of these take time and resources that your client may not wait for.
Small businesses, on average, spend $1,500 per new employee for hiring and training. And it’s not a couple of weeks, at least, until the employee starts being productive.
White label agencies eliminate this cost and time completely.
And you can devote the extra time to business expansion or other ways to create revenue.
According to the graph above, it takes 1-2 weeks, on average, to fill an entry-level position. Further, companies, on average, provide 60 hours of training to their employees in 2020. And employees are usually salaried during the training duration.
If you pay an average of $25/hour that is $1,500 spent.
A white label agency hires only trained talent. So you will get your requirements fulfilled immediately.
And because there’s less input on your part, you can spend the time focusing on your business.
3. Meeting Deadlines
White label agencies go above and beyond to keep you in their good graces. Why? Because they want continued business from you.
So the odds of a white label employee missing deadlines is very odd. With continued quality submissions, you can foster a better relationship with your client as well. This, in turn, will lead to more business opportunities for you.
So employing a white label agency establishes a cycle of profit for your business.
Things to consider before a White Label Agency Partnership
Your first time working with a white label agency may feel like a shot in the dark. But if you do your research right, there’s no reason why you can’t be successful.
1. Portfolio of the agency
Beyond the quality of an agency’s work, you need to gauge if their working style matches yours. When you present a deliverable to a client, they shouldn’t know that you’ve outsourced the work.
A white label agency works for many clients. So they should have the ability to adapt to various brand voices.
So keep an eye out for the work they’ve submitted to different brands. Try to look for elements that remain constant. If there are too many repetitions, then you may want to consider a different agency.
2. Extent of Support
One of the main benefits of a white label agency is the post-project support that they provide. Most agencies allow their clients to request edits.
Look for agencies that offer extended support in their list of services. Most white-label digital agencies do this as a way to retain their customers.
This is obviously one of the first things you would look at for the white label partnership to be profitable to you.
Different agencies operate at different costs. So always do in-depth research about the services and the pricing offered by various agencies.
Reach out to the agencies. A one-on-one conversation might help to bring down the cost for you.
4. Their employees
Try to find the Behance or LinkedIn profiles of the individual employees. This will give you a more accurate representation of the agency’s potential.
See if you can also find individual reviews of the person working for your brand. This will give you a better sense of the type of work you can expect.
Most white label agencies won’t tell you which employee will work with you before signing, but it doesn’t hurt to ask.
5. The time taken to begin
Some white label agencies have a lengthy contract and employee assigning process. This may cause a delay in submitting to your client.
The “onboarding” process should be the easiest part of the whole deal. This is how you can tell that an agency is good at its job.
Ideally, initiating a partnership to start work on a project shouldn’t take more than one or two days.
6. Performance Reports
Analyzing the performance of a creative or marketing campaign is a key part of digital marketing. Look for white label digital agencies that offer this service.
They are best equipped to tell you its performance.
If done right, partnering with a white label agency can save you at least $2000/month in revenue.