Manage production volume
Successful agencies have used white label companies to help level out the volume of work and free up precious time. With an external provider handle the bulk of content development, new agency owners can direct their time to business development and client management.
Revenue streams are freed up or may be added to as a white label provider has a team of graphic designers, writers, and web developers at their disposal. With professionals on stand by, agency owners can consider adding new services to their portfolio at relatively little cost. This provides huge opportunities for cross-selling or upselling of products.
For example, a client may require daily social media posts across their channels. An agency with multiple products could offer blog writing or video content generation as supporting services, and increase the AOV of their existing customers.
Low capital expenditure
Start up agencies are faced with finding capital to purchase new products or equipment, using a white label company to manage production of work removes the need to invest in new computers or expensive software. White label businesses will have their own design packages and systems already in place, removing the burden of expense from new start up agencies.
The same applies to staff salaries, new companies frequently struggle to maintain payroll and with a fast growing agency, finding the resources to support new staff can be hard, but with a white label service, all that needs to be paid is a monthly fee.
Flexibility
Startup agencies can often be in business for a while before discovering their niche or identifying their ideal clients and service offerings. Partnering with a white label service at a relatively economical cost allows new agencies to test the water for new products and services offerings before committing to a large financial investment.
New products can be added and removed easily with minimal disruption and relatively low outlay. This provides new start up agencies with the flexibility to experiment with products or services until they find what works best for their market. With the freedom to test new services and discover the ones that work, startup agencies are able to identify the most profitable revenue stream for their business and unlock new opportunities.
Profitability control
With a minimal outlay and reduced staffing need, white label service can help start up agencies to maximize profits quickly. As a team of designers work behind the scenes to generate the work, new agency owners can turn their time and attention towards examining their business model. Having a clear and unimpeded view of the business means that failing propositions can be monitored and quickly removed, or best selling services can be ramped up further to make higher gains and increase agency profits.
While the visibility into services can offer new opportunities, one of the biggest benefits of partnering with a white label provide is the control that startup agencies have over their prices. Once the fee is paid to the white label service, agencies are free to set their prices however they wish. This allows startup agencies to make tempting offer to potential clients and tempt clients to try their service. Or, if the client pool is flooded, prices can be raised to achieve healthier profits and improved cashflow.
Competitive edge
Startup agencies need to stand out in their market or niche if they are to succeed. White label companies remove the burden of work and much of the financial pressure which helps companies give their clients what they want in both an agile and dependable manner. Maintaining deadlines, producing quality work, and specialising in a specific niche or sector are all ways that new agencies can stand out, and with a white label company providing the work, startup agency owners are free to dedicate their time to promoting and marketing their new business.
Manage agency growth
New businesses can often find themselves in feast or famine mode and this applies to startup agencies. Clients can schedule services all at once or not at all. Attracting clients will be necessary if owners want their agency to grow larger, and having work outsourced means that growth can be managed intelligently to minimize disruption. Spikes in order volume and inceases in orders can be forecasted and handled proactively and a good white label service should be able to flex up and down with changing volume.
Even so, startup agencies that use a white label business model may find that they can retain better control over work demands and outputs as they can keep their eyes fully on the business. This can promote a cleaner and more evenly paced growth, with less chance of missed deliveries and client losses.
Find a white label partner
Sourcing a good white label partner is essential for startup agencies is they are hoping to achieve success. New agencies will need to perform their due diligence and spedn some time researching potential white label providers before using their services.
White label companies are plentiful and come in all forms and sizes. Some specialize in certain business sectors or provide specific services like social media management or content writing. New agencies will need to fully undertand what they can expect from their white label partner and ensure that the available product offerings align with business needs.
It goes almost without saying that online reviews and rating should be checked. Startup agencies cannot afford to partner with a white label service that could potentially damage their reputation, so finding a white label company with a good track record is adbvisable. The work that the white label provider produces will be passed on to your own clients so it needs to be professional and on point. Work samples should be requested to check quality.
Speak to the team at Smarcomms about starting your own white label service.
