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Is White Label marketing still a viable business model in 2023?

As a business model, white label marketing has been used by agencies and providers all over the world with high success. The appeal of outsourcing work to an external provider and having financial control makes partnering with a white label service a popular solution for agencies who are looking to grow, scale, or add to their existing service offerings.

What can I offer as a white label service in 2023?

If you are currently the owner of an agency and are interested in white label services then 2023 may be the year to begin. There are a number of available options open to you and almost anything can be offered as a white label service, especially in the digital marketing world.

Common white label offerings can include:

  • Social media marketing
  • Video marketing
  • Content writing
  • SEO
  • Email marketing
  • Product management

One of the most popular services offered by white label providers is social media marketing. Almost all businesses have a social presence, sometimes across multiple channels or platforms, and are keen for an outside agency to manage the work. Now with the increased interest in platforms like TikTok, white label services are in demand more than ever before.

Will white label work for my agency?

There are no limitations on the type or size of agency that can benefit from using white label services. Agencies large and small based anywhere in the world use white label providers to perform work on their behalf. Once the client work is handed over, your white label agency will create the necessary visuals and captions, leaving you with ready to post social media content.

This gives agencies the opportunity to focus more closely on things like client development and customer satisfaction and many agency owners report an increase in business once they start using white label products.

How much can I charge for services?

Working with a white label company requires a monthly fee to cover the cost of work performed. This is typically agreed on a per-client basis or decided by the volume of work required. However, once service fees are paid to the white label company, agency owners are free to set prices as they please.

Profit margins can be determined by the prices your agency charges to the end user and as an agency owner, you will have full freedom and flexibility when it comes to pricing services and social media packages.

What are the benefits of using a white label service in 2023?

Apart from the benefits of profit and cost management, there are some other benefits that come from using white label products. The work is handled offsite, so that means your agency doesn’t need graphic design staff, computers, workstations, or expensive design software. Reduced staff and infrastructure mean less capital investment needed, lower running costs, and minimal outlay for staff salaries.

Streamlining operations means a direct improvement to the bottom line and agencies working in partnership with a white label service may no longer require large premises. Downsizing and manpower reduction are entirely possible as the business complexities are managed externally by the white label service. Reduced rent and wages frequently equate to substantial savings.

How is work managed?

Delivering client work on time is a pre-requisite is your agency wants to remain in the business long term. Work performed by a white label service will be completed and delivered on a pre-arranged schedule to keep customer needs fulfilled. The white label company you partner with should be able to provide you with multiple communication channels and have an efficient customer service department.

If you want to discuss a project or have a query that you need to be answered, you should be able to expect a reasonable response time. If you are considering a partnership with a white label provider then it is worth finding out how you can communicate with their team. Slow response times and delays can negatively impact your agency and damage your business reputation, so the speed of communication is an important component.

Will my client know I am using a white label service?

In this type of business arrangement, the relationship is between the agency and the white label company. Unless you want to be 100% transparent, there is no reason for the client to know who does the work. This may sound strange at first but it is not that different from how traditional agencies operate using on-site staff.

Think about it. Your client doesn’t usually know that it was Teddy, one of your in-house graphic designers, that created their amazing social media content. They just know that the work was done by XYZ Agency. White label operates in much the same way, only the work is performed off-site by a third-party provider.

What if I need to scale?

If part of your 2023 business plan is to expand operations and grow your agency, then a white label company can be a huge help. Outsourcing client work means that you can scale without having to add extra staff, or equipment, or manage a higher workload. As your business grows, your white label provider should be able to handle the contracts you bring in, without missing a beat.

In fact, using an external white label provider positions your business perfectly for expansion, as not only will your agency be able to grow quicker, but your menu of service offerings can be increased. This opens up opportunities for upselling and cross-selling which may have been too complex for your agency and staff to manage in-house.

Without the added complications, the way is clear for agency owners to turn their attention to lead generation and business development to keep their agency healthy and profitable by bringing in work.

Which white label company should I partner with in 2023?

There are plenty of options for white label partnerships, but you will need to do your due diligence. Ask for work samples and check online reviews before making a commitment to any white label provider. Ensure that their staff is capable of doing the work to a professional standard, and that there are numerous methods to facilitate communication.

Find out more about profitable white label partnerships at Smarcomms.

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