You have been working with an SEO agency for quite some time. Lately, the company has also been acting as your digital marketing agency. But are you sure it is the same group of people managing both SEO and marketing? Could it be that the marketing is being outsourced to a third party?
Outsourced digital marketing sold under the buyer’s brand is known as ‘white label digital marketing’. It is fairly common, as evidenced by running a Google search on it. The real question for companies paying for professional marketing is whether it matters.
A Simple Definition
The simplest and easiest way to define white label digital marketing is to say that it is marketing provided by an anonymous agency. Think of it in terms of any other white label product. Take sunglasses. There are dozens, if not hundreds, of brands that do not actually manufacture sunglasses themselves. They hire manufacturers in China to produce their products, then put their own labels on the merchandise.
White label digital marketing works the same way. You might have an SEO company that wants to expand into digital marketing but does not have the resources to hire a dedicated marketing staff and outfit them with the space and equipment they need. So instead, they outsource the work to an existing agency. The client never knows. As far as the client is concerned, the original SEO company manages the work and generates the bill.
Why Companies Do It
At this point you might be wondering why companies would purchase white label digital marketing services. According to the experts at Salt Lake City’s Webtek Digital Marketing, there are lots of reasons for doing so. Here are just a few:
- Business Expansion – Referring back to the previous example, existing agencies will often choose white label services in order to facilitate business expansion without having to hire more staff. Outsourcing can be a steppingstone from current resources to future resources.
- Startup Operations – Launching a startup is another common scenario. A brand-new company wants to get going with as many clients as possible from the very start. Yet startup owners do not have the necessary staff to handle so many clients.
- Reselling White Label Services – There are some entrepreneurs whose expertise lies in setting up companies that do absolutely everything through white label services. They are essentially service resellers. They focus on marketing their brands while outsourcing partners do the actual work.
There are other reasons for getting into white label services that are not mentioned here. The reality is that outsourcing is so common very few people question it anymore. What they do question is whether it matters to clients.
As Long as the Work Gets Done
Who manages digital marketing should not matter to the client as long as the work is getting done and the desired results are being achieved. Even so, it is a sticky proposition. An SEO agency or entrepreneur relying on a white label digital marketing agency becomes an intermediary. That can make it difficult for a client and marketing staff to get on the same page.
There is also the question of culpability. Even though a third party is managing digital marketing, the entity responsible for reselling the services is ultimately responsible for the results. But will that entity always take responsibility?
White label digital marketing is neither good nor bad in and of itself. It is simply another business model. If it matters to you as a business owner, you can always ask before signing on with a new digital marketing agency.
