5 reasons why white labeling is a great digital marketing strategy
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Business growth difficulties – this is one of those problems that many entrepreneurs love. However, being overstretched by a growing client list creates management issues and can quickly become a huge strain on your existing staff.
You’ve probably already pruned a few problem customers to help ease the burden on your business. But no entrepreneur likes turning down business.
One solution might be to hire more staff to meet the growing demands of your business. However, there are a few problems with this approach.
First, hiring more employees means hiring more executives, which lowers your bottom line. Second, if your business is going through a tough time or can’t sustain growth, you’ll have to lay off employees, which hurts morale. Finally, retaining high-level talent can be difficult, and the number of qualified employees after a certain point will start to drop, especially in less densely populated cities and regions.
A sure-fire solution to help you overcome growing pains is to outsource or white-label work that you simply cannot complete. Likewise, white labeling can be an effective solution to fill critical labor or technical gaps so you can offer your customers a wider range of services at a premium price.
With that in mind, here are the benefits of white labeling some of your digital marketing services with a third-party agency to improve your business results.
Related: Dropshipping or White Label: Which is Right for You?
1. Proven business model
At its core, white labeling is just a form of outsourcing, common in all industries. For digital marketers, the white label formula is simple: you charge a client a premium for various jobs, such as blogging, and outsource that job to a third-party agency and keep the difference in rates like profit.
Now, having more work on a project can be confusing in some cases. However, white labeling simplifies your agency role as the liaison between your client’s needs and the work being produced.
Instead of hiring a content writer to produce dozens of blogs in a month or produce a multi-page white paper, all you need is an SEO (search engine optimization) manager to coordinate the communication between your client and your white label partner.
The best part is that you get all the credit because you can white label all the work as your own. Everyone is happy and better off with the business opportunity you provided.
2. More trustworthy than independents
Chances are, if you’ve experienced some of these growing pains, you’ve probably tried your hand at a few freelancers. However, as someone who has worked with hundreds of freelancers over the years, they can be notoriously unreliable. Also, you might only find one or two that stay for every 20 freelancers.
So why not contact an outside company that specializes in the domains you sell?
Although more expensive than freelancers, working with a qualified white label partner ensures that:
- Deadlines are respected.
- All work is edited and double checked.
- Projects are carried out to the highest standards.
- Communication is quick and responsive.
Additionally, you can gauge the quality and reliability of a white label partner through their reviews, case studies, previous customer lists, and testimonials.
Even if you find a short-term freelancer, they can quickly move on to new opportunities if you can’t metaphorically nurture them or find full-time employment elsewhere.
On the contrary, white label partnerships can be long-term relationships that help grow both of your businesses.
Related: When Should You Switch to Private Labeling?
3. Meeting specialization needs
Likewise, white label partners can be great ways to complete projects that you don’t have the time or talent to complete. This includes labor-intensive projects, such as white papers, e-books, website redirects, audits, display advertising campaigns, etc.
For this reason, white label partnerships are beneficial for both boutiques and general agencies that don’t specialize in a particular area. In fact, partnering with another agency allows boutique agencies to provide a full range of products, relying on another company’s specialization to fill the job that their in-house staff are not qualified for.
4. Access advanced tools and software
One of the biggest challenges for early stage marketing startups is funding various tools and software solutions to propel their business.
For example, a subscription to SEMrush could cost up to $500 at least for a single business subscription, and an enterprise subscription to tools like Hubspot could run your business for thousands of dollars.
When you partner with a white label agency, you get access to advanced tools like keyword tracking tools, content research tools, backlinking software, and more.
Not only does a white label partner have access to tools like Ahrefs and SEMrush, but they may also have specialized tools like Adobe Photoshop, Canva, and Hootsuite that can help you accomplish various client tasks that you literally don’t have. the tools to accomplish.
In addition, you can also hire white label companies to carry out internal projects, using the software and tools they provide internally, to complete various projects for your own benefit.
Related: How the Right Digital Tools Can Help Your Business Win Every Time
5. Save resources for internal growth
Finally, focusing resources on external goals such as sales, customer management, reporting, and things that make customers feel special is another big benefit of white labeling. Automation surely helps in this area, but having that personal touch makes all the difference in the world.
White labeling frees up manpower and resources to work on internal growth and further grow your business.
Plus, white labeling also allows you to spend more time on strategy and tracking progress on a client-by-client basis.
All in all, white labeling is as proven a business model as any other aspect of digital marketing. For this reason, I recommend white labeling a good portion of your customers that you find difficult, monotonous, or don’t have the immediate resources to approach you.
More importantly, if a white label partnership doesn’t work out and you no longer need their services, it’s easy to end an engagement. But, alternatively, firing an employee because your business has slowed growth is much more difficult and can have even greater consequences.