Providing White Label Service for your partners, either you are developer, designer, copywriter, digital marketing specialist or coming from another branch, you need to ensure several key points in your business cooperation as the service provider.
The Basics
First and foremost, the scope of business cooperation and deliverables needs to be defined in detail, with proper NDA agreement covering both sides.
You, as the White Label Service provider, need to know the in-depth market situation with services you provide to your partner. Your role is not only to deliver ordered service but to provide counselling and help in the successful project delivery.
You, as the White Label Service provider, need to have these facts in mind:
✔ you are spared of the first line communication – big time saver
✔ minimized collection risk
✔ fair price positioning to your partner (you cannot charge retail prices for White Label Services) – because your partner is the one bringing the clients, maintaining communication and taking full collection risk
Good Practices
✔ signing NDA contract which covers all possible scenarios and potential problems
✔ define fixed hourlies for ad-hoc services but allow namespace for project-based activities
✔ provide tailor-made pricing which enables profit margin for both you and your partner
✔ consult your partner about specific project details and predict possible workflow bottlenecks
✔ implement the fair business practice, and respect your partner in terms of project financial flexibility, combined with a good redundancy plan
✔ frequently communicate, and resolve any possible disagreement immediately – project complications arise from mere lack of communication; anticipate that and act accordingly
Where White Label Service Providers often fail?
✔ lack of clarity in terms of business cooperation agreement; too many unknown variables
✔ charging retail prices for White Label Services
✔ counting every add-on minute on project tasks; lack of redundancy and prevention plan – can be hurtful when the project starts
✔ hasty and sloppy estimates on project scope which lead to frequent additional hours charges (out of the scope activities)
Conclusion
Being White Label Service provider for other companies doesn´t mean that you need to work with anybody you encounter. Rather be picky but work with the right people. For sure, even in the relationship with a great perspective, there can be downfalls. The point is to work and establish long-term business relationships with those with whom you share values. The most important things are open communication, transparency, mutual respect and support. There will be projects/cases which will cost you more time and money, but then, there will be highly profitable projects. That is a part of White Labeling. Good luck! 🙂
