Why Digital Marketing Agencies Should Use White Label Services

Contents

1. Introduction
2. What is a White Label Agency?
3. How is it Different from Hiring Freelancers?
4. Can My Agency Be Profitable with White Label Services?
5. Why Should You Use White Label Services for Digital Marketing?
6. Allows You to Run Business at Optimal Size
7. Facilitates Expansion
8. Reduces Workforce Management Hassles
9. Bridges the Information Gap and Delivers Data-Driven Solutions
10. Ensures Profitability
11. Boosts Client Retention
12. Helps Get More Business
13. Offers Cost-Efficiency
14. Allows You to Leverage Cross-Functional Expertise
15. Conclusion
16. About DashClicks

Digital marketing companies face several challenges. Sometimes, you have an influx of clients and want to scale. Meanwhile, at other times, you experience periods of slow business. Recruiting in-house staff or hiring freelancers may not always be a feasible solution to manage such volatile fluctuations.

With white label services, you don't have to worry about any of this. When you hire a white label agency, you outsource your business services to a third party, resell those services under your brand, meet your business goals, and keep your clients happy.

Your ability to succeed as a digital marketing agency depends primarily on your ability to scale business and reduce overall costs. It is essentially why most companies prefer to remain lean, thin, and agile so they can focus on their core strengths in the face of fluctuating demand and other market uncertainties.

What is a White Label Agency?

A white label agency works as an extension of your team. It provides you with its dedicated team of digital marketing strategists, software professionals, designers, developers, writers, SEO professionals, and people trained in other disciplines such as email marketing, social media marketing, web designing, paid advertising, and analytics.

By giving you quality services, a white label agency allows you to quickly expand your current offerings and fulfill other marketing services under your brand. Contrary to global outsourcing, where you might end up hiring generic and cheap talent, a white label agency makes sure that you get all kinds of quality services under one roof.Ā  When you hire a white label agency, you don't need to buy expensive tools. They use the best tools available in the market to offer you the best in class services.

How is it Different from Hiring Freelancers?

According to a study by Upwork, 57 million people in the United States are engaged in freelancing, which makes up a whopping 36% of the country's entire workforce. It is contrary to the trends prevalent in the early industrial age when most people went to a factory or an office to earn a living. The information age has changed the way we earn our livelihood.

According to WITI (Women in Technology International), freelancers will be 50% of the total workforce by 2025. Currently, their annual contribution to the US economy is approximately $1.4 trillion.

Some confuse white label services with hiring freelancers and subcontractors, but it's different. When you hire a freelancer or a subcontractor, you make them work as an in-house team member on your clients' accounts. Freelancers either charge hourly rates or on a project basis.

But when you hire a white label organization, you outsource work outside of your business and use your logo to rebrand the services provided by a third party. From a client's perspective, it doesn't matter what your business model is. They are chiefly concerned with achieving the results you have agreed on. White label services maintain quality and branding guidelines shared by your agency. Though you can inform your clients that you use a white-label service, most agencies prefer not to.

Related reading: Complete Guide to White Label Reselling

Can My Agency Be Profitable with White Label Services?

In the digital marketing industry, everything boils down to the return on investment your marketing agency can achieve for you. So, whether it's a quick fix or a long-term solution, white label services allow you to achieve marketing objectives and focus on other business aspects. No wonder digital marketing agencies and software companies are increasingly using white label services and have satisfied customers without investing in extensive office infrastructure or hiring expensive resources and tools required to succeed in a highly competitive environment.

Why Should You Use White Label Services for Digital Marketing?

There are numerous benefits of white labeling. Every small business or digital marketing agency should consider using a white-label service because it:

1. Allows You to Run Business at Optimal Size

Hiring is a time-consuming and expensive process for most businesses; working with a white label agency allows you to skip it entirely. White label services enable you to scale up or downsize as per your business requirements without worrying about resource crunch, recruitment hassles, or overtasked workforce. It can be a boon for fast-growing digital agencies with a highly low-risk factor.

2. Facilitates Expansion

Most marketing agencies excel at one type of service; it's usually because most solopreneurs sell something they are confident they can deliver value for. As the company expands and gets more clients, the focus shifts to a bundle of services the marketing agency wants to provide under one roof. For example, if you are an agency for SEO services, working with a white label provider will allow you to add additional services such as PPC, social media marketing, and email marketing.

3. Reduces Workforce Management Hassles

When you buy white label services, you don’t have to worry about hiring, training, attrition, retention, paying employee benefits, leaves, and bad-hiring costs. With a white label agency, you don’t have to face the following HR challenges common among small businesses:

• Legal and regulatory compliance
• Finding the right employees
• Retaining talent
• Training employees
• Resistance to organizational change
• Workplace diversity (cultural, ethnic, and demographic)
• Employee compensation (the cost of benefits, taxes, and training together may add up to as much as three times the employee’s salary)
• Low employee motivation
• Resistance to technology adoption
• Developing a competitive benefits package

4. Bridges the Information Gap, Delivers Data-Driven Solutions

With markets getting saturated worldwide, it is challenging to forecast demand and identify newer markets. More and more businesses are now using big data sets and artificial intelligence for data mining and analytics. In such an environment, only data-driven campaigns drive results. If your business strategy is based on intuition alone instead of statistical analysis and data patterns, you can't expect actual results.

A white label agency has a skilled workforce that includes data-driven marketers who are well-versed in web analytics and AI. So, they can deliver lasting solutions for their client's marketing campaigns using sophisticated tools.

5. Ensures Profitability

The market offers you a flood of opportunities once you start delivering quality services aimed at client satisfaction. Businesses prefer B2B partners that can provide all related services under one roof as it saves them the time and the hassle of dealing with multiple service providers.

When marketing agencies focus on expansion and outsource services to white label companies, they get fantastic bundle deals. Furthermore, it also helps them cut the exorbitant costs associated with recruitment, training, offering employee benefits, and adding infrastructure, ensuring profitability.

6. Boosts Client Retention

Hiring a white label agency also helps you retain clients, especially when your competitors want to lure them with additional services. The more aggressive agencies generally push a bundle deal, and most often, businesses buy them as it saves them time. A white label company allows you to expand your service portfolio by helping you keep clients without increasing your current headcount and related training cost.

7. Helps Get More Business

As you add more services to your portfolio using a white label arrangement, you start getting more business at a rapid rate. Some niches have a longer sales cycle; others are more competitive. But when you offer a bundle of services, you can white-label the ones that have a shorter sales cycle and sell them quicker than your primary service. It will help you maintain your cash flow throughout the year, seize fresh opportunities, generate leads, and expand your client base.

8. Offers Cost-Efficiency

According to Deloitte's 2020 global outsourcing survey, 70% of respondents cited cost reduction as the primary reason for outsourcing. Hiring white label service is akin to business process outsourcing, where cost reduction becomes a significant competitive advantage. That's essentially why more and more startups and small digital marketing companies are switching to white label services.

9. Allows You to Leverage Cross-Functional Expertise

White label services work on a B2B model; they hire the best professionals in various domains to serve diverse businesses. So, they use economies of scale to their advantage. For example, they have many trained SEO professionals, developers, writers, and designers working under one roof. When you work with a white label agency, you get to leverage their cross-functional expertise.

Conclusion

In today's competitive business environment, cash-strapped startups and small marketing agencies can't afford the expensive tools, skilled resources, and continual testing needed to implement data-driven strategies. It limits their ability to make relevant decisions and restricts them to a handful of clients. A white label agency can be the lifeboat for such startups, keeping them afloat and allowing them to expand and forge new business deals.

About DashClicks

As a white-label service, we take your worries away, so you have more time to expand your business. You can use our platform to resell white label Facebook Ads, SEO, website design, funnel building, social media posting, content marketing, PPC, and directory listings. You can check out our website to see the full range of white-label services we offer. If you want to get in touch, fill in our contact form, and we will get back.