Pitfalls To Avoid While Partnering With A White Label Agency

Last Updated on: 22nd November 2023, 06:39 pm

In 2019, the global volume of ITO (information technology outsourcing) was US$ 66.5 billion while that of BPO (business process outsourcing was US$ 26 billion. Both ITO and BPO indicate partnerships with white label agencies. 

Let’s do a quick concept check at this point to ensure that we’re all on the same page. White label agencies offer unbranded products and services to companies to resell those items under their own brand names.

There are clearly benefits in partnering with white label agencies for their market size to be so big. Provided you learn to avoid certain pitfalls, however. 

Benefits Of Partnering With A White Label Agency

The major reasons prompting businesses to increasingly access white label services are as follows: 

  • Partnership with a white label agency implies instant access to specialized expertise. You can completely bypass the cost and time involved in research and development. 
  • Reducing the overhead costs and administrative hassles involved in developing and maintaining an in-house team is something all entrepreneurs try to achieve. That’s precisely what you gain when you outsource specialized needs to a white label service provider.
  • You can expand and diversify your product and/or service offerings with minimal investments. Partnership with a white label agency has scalability built into it.  
  • Rapid business growth becomes more achievable also because you have more time to concentrate on core business functions like marketing strategy development increasing your consumer base.

To optimize these benefits, however, you need to ensure dodging some legendary problems of partnering with a white label agency.

Issues To Avoid When Partnering With A White Label Agency

Everything in life has a flip side. Partnership with a white label service provider is no exception.  Take care to eliminate the probable glitches listed below. You’ll never have a sinking feeling as if you are walking on quicksand with your white label partner.  

Pitfall # 1: Not Determining Your Strategy Before You Begin Your Partnership

Your partnership with a white label agency will aid you in your business growth when you know why you want that partnership. It is critical to have a partnership strategy. 

Your white label partner is there to implement that part of your business strategy for which you need specialized expertise. To be dependent on a white label service provider to determine your partnership strategy is like letting the stablehand control the reins of a horse you are riding.

It is not a good business practice to enter into a white label partnership without a clear idea of what you want, why you want that, and how you want to achieve it. 

Pitfall # 2: Having The Wrong Expectations From Your White Label Partner

Your white label partner can facilitate the process of your business growth by making their specialized expertise available to you. They cannot drive the growth of your business. You need to drive growth with your own strategic planning.

It is possible that through a long-term partnership with the same white label agency, you develop a relationship of dependence and trust. It is alright then to brainstorm with your white label team leader for some strategic inputs. 

However, even then, you remain in the driving seat. To expect your white label partner to drive your business growth is to depend on backseat driving to reach your destination safely. 

You know the folly of that, right? Be sure to avoid that pitfall. 

Pitfall # 3: Choosing A Partner Not Specialized In Providing White Label Services 

Providing white label services is about making specialized expertise readily available to you. It has its own systems and processes that are considerably different from other business models.

An agency not specialized in white labeling may not have the necessary processes in place. To cite a simple example, an agency specialized in offering white label services has what it takes to address sudden scaling needs. 

If your white label partner does not have a similar system in place due to lack of specialization, imagine how your scaling need will suffer. That will adversely affect your client relationship, in turn. 

Think of healthcare in this context. A medical doctor (in the US), aka a general practitioner (in the UK and most other Commonwealth countries) is of great help unless the situation is critical. Only specialists can effectively handle crisis situations. 

It is not very different in the case of white label agencies. You reach out to them because you need specialized support. A generalist is not a good match for that role.

Pitfall # 4: Choosing An Inexperienced Partner

An inexperienced agency trying to enter the white label service-providing space may not be the best choice as a partner. Providing white label services needs specialized training and expertise. Lack of experience can have disastrous effects sometimes.

Think of a company that has outsourced its customer query handling to a white label agency. An employee there answers a call naming their own company instead of the client company’s. You can imagine the impact of such an error. 

Such a situation is often not a case of natural human error, but a result of slipshod training by inexperienced staff. It could also be due to force of habit. 

Being new to white labeling may mean the same staff had earlier been in B2C sales when they would answer calls in their own company’s name. You eliminate such chances when you partner with an agency experienced in providing white label services. 

Whatever be the service you want, experience counts. It is good business sense to check out previous work and ask for reference calls to earlier clients.

Pitfall # 5: Going For The Cheapest Offer

That may well prove to be costlier in the long run. The adage “penny wise and pound foolish” has not emerged in a vacuum. Real-life experiences have led to the creation of this pithy saying. 

Why should a white label agency offer their services at rates cheaper than the market? There’s always a catch in that. 

Remember that companies often offer “stock clearance sales”. The items offered on discount are those that have not sold. There are similarly discounted offers on “factory seconds” and so on. 

The point is, an experienced company specialized in white labeling has no reason to offer their services at rates lower than the market. Of course, there are regional variations in the market rates. Beyond that, the cheapest may certainly not be the best. 

If the rates are cheaper than the average rates in the market, it could well be a cover-up for lack of experience or specialization. They may fail to deliver, as pointed out above. 

Choose A Specialized White Label Agency Offering Specialized Expertise 

That is, of course, essential if you want to optimize the benefits of your partnership with a white label agency. At Uplers, we offer you a special advantage along with our specialized expertise in offering white label services. 

We function through a dedicated team approach. That is like having an in-house team without the botheration of issuing monthly paychecks. Also without the overhead costs of office setup for the team and the administrative headaches that come with it. 

The bonus is that the team is always available to you whenever you need them. A long-term partnership with a specialized white label team dedicated to addressing your needs is like betting on a horse that you know will win. 

Someone else keeps and trains the horse, but you earn just by betting on it. Isn’t that something to grab with both hands?

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