A white label agency is one that develops products for other companies rather than for end-users. The companies that buy from white label agencies then brand those products and sell them to end-users.
The Deloitte Global 2019 Survey Report uses the term Shared Services Centers (SSCs) for white label solution providers. This is in recognition of the value addition that a partnership with a white label company makes to businesses.
The Numbers Have A Story To Tell
The Deloitte report reflects that white label solution providers or SSCs have grown because they generate tangible and measurable business outcomes. Customer support, marketing, and sales are the areas where SSCs have proven to be most beneficial.
Some numbers from the report are relevant in this context.
- Accessing SSCs for marketing and sales has grown by 35% between 2017 and 2019. This is the highest single segment growth during this period.
- Companies achieve an average of 30% one-time and 10% run-rate benefits from white label solution providers.
Why You Need To Partner With A White Label Digital Marketing Agency: Top 5 Reasons
Let us apply the insights from the Deloitte survey to white label digital marketing agencies. It becomes evident why a partnership with them is critical. We summarize the top 5 reasons below.
Reason # 1: White Label Digital Marketing Agencies Are Cost-Effective
Partnering a digital marketing SSC is to develop products that you can sell to your customers under your company brand. That is a cost-effective way to get more business for less investment.
You can expand and diversify your product range without increasing your overhead and human resource costs. More than 45% of the respondent companies in the Deloitte survey achieved over 10% reduction in human resource deployment within a year of partnering with SSCs.
Such a strategic partnership is also cost-effective from the Return on Investments (RoI) perspective. The Deloitte report offers evidence of a high ROI rate.
Half of the responding companies accessing white label digital marketing solutions reached a break-even point on their investments within two years. Within three years, 80% of the respondents recovered their total investments.
Reason # 2: Access To Specialized And Additional Skills
When you have a strategic partnership with a digital marketing SSC, you have no reason to turn away customers. That is true both about the number of customers and about the types of products or services they want.
White label digital marketing agencies add to the skill-set available to you inhouse. They also make specialized expertise readily accessible to you. In case a customer wants a product or service that you haven’t developed before, your white label partner can develop it for you.
Timely response by white label solution providers to specialized requests is one of the key reasons for partnering them. In the Deloitte survey, it has emerged as second only to cost-effectiveness.
However, the survey findings also indicate that a long-term partnership with a dependable white label SSC is an important driving factor for such ready access to an expanded skill-set.
With a long-term strategic partnership, you are already aware of how much skills expansion is possible. You also know the range of specialized expertise available from your partners.
Reason # 3: Increased Scalability Options
Easy scalability is an inherent feature of partnering with a white label service provider. Several reasons facilitate easy scalability options in such a strategic partnership.
It Minimizes The Time Factor
- To scale your business means you need more hands and heads. Additional human resources and skills, in other words.
- Recruitment, hiring, orientation, and training are essential processes in such a scenario. Each of these processes is time-consuming.
- With a white label solution provider as your partner, you can bypass all of these processes.
Your White Label Digital Marketing Partner Is Your Catalyst For Growth
- One of the core features of white label SSCs is to make scalable teams available to you as and when you need them. Having a partnership with a white label agency is to have immediate access to an extended team as and when you need it. A readymade team with the kind of skills you require.
- You don’t need to undergo any operational stress as you scale your business. Such stress acts as a deterrent. With your white label partner absorbing the stress for you, you can concentrate on growing your business smoothly.
- Your white label digital marketing partner has the potential to help you innovate. Respondents in the Deloitte survey have mentioned that white label SSCs can anticipate emerging client needs. They can guide businesses to be ready for these needs before a business unit has itself identified it.
Long-Term Relationship → Trust → Comfortable Scaling
- You may hire a new white label digital marketing agency every time you need them. However, you will be investing your time and resources in the same searching, scanning, interviewing, and contracting processes several times over.
- When you establish a long-term partnership with a dedicated team from one white label digital marketing SSC, you build a relationship of trust and dependability. That saves time and resources. That smoothens your business scaling process.
Reason # 4: An Opportunity To Apply The Wholesale/Retail Principle
The wholesale/retail principle is simple. Retailers buy from wholesale suppliers at a particular price. They then retail the products to the end-users at a higher rate to make a profit.
The same principle applies to your partnership with a white label solution provider. You get your products from your partner at a predetermined price. You are then free to sell those products to your customers at prices that you determine yourself.
You are free to decide on the price that you want. There’s no “MRP” (maximum retail price) regulation to stifle your negotiation skills here.
Reason # 5: More Time To Focus On Core Business Functions
We’ve already mentioned that one of the tasks of your white label digital marketing partner is to absorb your operational stress as you run and grow your business. The implication is that you have more time and energy to concentrate on key business functions.
Developing business strategy, planning growth, and managing customer relations are typical examples of core managerial functions. To have more time for these activities leads to a growth in productivity.
Among the Deloitte respondents, 70% experienced 5 to 15% annual productivity growth through partnering with white label SSCs.
Partner A Dedicated Team From A Reputed White Label Agency For Maximum Advantage
The dedicated team model allows you to optimize the advantages of partnering with an efficient and dependable white label digital marketing agency. It is like having an in-house team without bothering about monthly paychecks even when there is no work.
You choose the members you want to be in your team, and they remain dedicated to you for as long as you want them. No arbitrary changes in the team structure without your knowledge. This is one of the greatest advantages of a dedicated team.
However, you pay your team members in your partner agency only when they work for you. It is difficult to think of a more winning option.
Read this post to know more about why a dedicated team from a reputed white label SSC is preferable to hiring freelancers.
