White labeling is a term that only in recent years has gained notoriety. With the advent of digital marketing, it has entered the industry’s lexicon’s proscenium more or less. Because of this, many people have the misconception that white label services are a recent thing.
But the exact opposite is true. White labeling has been around for at least decades. But before we delve into history, let’s start with the basics: what is white label service? In very general terms, white-label service is when one company offers a product or service to another company for the sake of passing it on to their clients as their product or service.
Here’s a practical example. If you have ever been to Costco and seen or purchased anything from their in-house brand Kirkland, you know what white label service is. Costco doesn’t produce anything of their own.
Instead, they work with established producers and license their products under the Kirkland brand. In essence, they make use of other people’s products and re-label them as their own. That’s white-label service in a nutshell.
White Label Service and Digital Marketing
White labeling experienced something of a resurgence with the digital marketing boom. Many agencies were trying to get in on the ground floor as fast as they could but, being newbies, there were services that they didn’t even know how to begin offering.
So they became white label companies that enlisted the products and services of specialized companies to offer more to their clients. For instance, if you have no experience with PPC advertising, you may still be able to provide that service to your clients through white-label service.
White labeling is usually implemented by companies that are ready to offer digital marketing services on the front end (dealing directly with customers, taking payments, writing up invoices, etc.) The company that provides the white label services is usually more concerned with the product or service and not customer acquisition.
So how does white label digital marketing work? As you can imagine, white label digital marketing rebrands services instead of physical products. One marketing agency may enlist the white label service of another company – for instance, content marketing – and pass it off to their clients as their own.
Typically, the end client has no idea that the service they just paid came from a company other than the one they are doing business with. The anonymous company providing the service gets paid by the white labeling company, and everyone’s happy.
Why White Label?
At this point, you may be asking yourself why any company would offer its services anonymously? Why not only cut out the middle man and offer your services directly to the client? It’s not that simple for a lot of companies.
Building your label (private label) can be very difficult in digital marketing. Doing so takes a lot of time and effort in and of itself. So while you are focusing on crafting your services the best you can, you still have to worry about advertising, customer acquisition, and branding.
There is also the matter of distribution outlets. A company may not have access to as many clients as a white labeling company has. In this sense, the company that provides the services benefits from the white labeling company’s established clientele – meaning more money than they would have made independently.
Many companies are merely interested in B2B transactions to focus on their product or service and not have to worry about front-end operations. In the end, it can be a very lucrative and symbiotic relationship for all parties involved.
Advantages of White Labeling for your Agency
We’ve talked about how white labeling works in digital marketing and how the provider can benefit, but why should your agency use white label services? There are a lot of reasons, but here are some of the most compelling:
- In-House Hiring: In general, it is much less expensive to enlist an outside provider’s services than to hire an in-house team for something like social media marketing. If you don’t have the infrastructure or the in-house personnel to offer a service that you know would boost sales, white labeling is a cost-effective strategy.
- Flexibility: White labeling marketing services allow you to determine which services are the best in the industry. By investing in your team, you run the risk of developing a service that, in the end, isn’t all that great. Or, at the very least, it may not be the best in the industry. But when you white label service, you can see how it performs and change the provider if you need to.
- Saves Time: Working with a white label agency can save you a lot of time too. Without having to recruit an in-house team, commit human resources to R&D, and develop new services, you will be free to concentrate on matters more critical to your business. White label agencies can work under your brand and lend their established expertise, personnel, and resources.
- Expert Personnel: One big problem that agencies face when the white label arises when the client wants to talk shop. But if you white-labeled someone else’s email marketing service, you may be out of your depth. Some white label agencies will provide personnel that can speak with your clients about services on your behalf.
White Label Reputation Management Software
BrandREVU is a rare white labeling option for digital marketing agencies. Since it’s the only software of it’s kind, every agency in the world wants it. BrandREVU is the only white-label tool that allows agencies to distribute check-in software to their clients. Since local SEO is fundamental to agency success, there’s very little reason why BrandREVU won’t be part of every successful agency in the world by 2023. Unlike other reputation management platforms, BrandREVU does more than increase review frequency and engagement. It serves as a local SEO engine for your clients.
It’s All About Profits
In the end, white labeling can save and make you a ton of money. Whether your agency is just starting or you are established but want to offer more to increase revenue, white labeling will increase your profits. Here at BrandREVU, we can lend you our expertise in reputation management, content marketing, and organic ranking so you can offer real results to your clients and drive your sales. Get started today.