In 2022, the U.S. revenue for agencies from all disciplines jumped 13.5%, which was the fastest growth in the annual Agency Report since 2000. If you put this with the ongoing crisis, you have a serious threat to your agency’s bottom-line growth.
So, how do you tackle this problem and grow the bottom line of your agency? As we know, the bottom line of an agency is:
Net profit (or Bottom Line) = Sales revenue or Gross income from all sources – Total costs, expenditures.
The primary idea is to increase gross income and reduce costs & expenses to a minimum. So, how do white label services or a white label partner contribute to this?
Partnering with a white label provider has been one of the recommended methods of growing your agency. It allows you to rebrand, reprice, and resell top-quality services to your clients.
In this article, I am going to talk about the top 4 ways on how white label services can fuel the growth of your agency’s bottom line!
Getting Expertise for High-Value Projects
44.3% of agencies agree that competition for talent/expertise is one of their key challenges.
With less expertise at your disposal, your agency will face problems in retaining old clients if not acquiring new ones.
Besides, it’s not always ideal to invest in getting in-house expertise when the types of projects keep changing every month and every new project requires unique industry expertise.
This will seriously impact your agency’s bottom line and is definitely a threat to its sustainability.
From differentiating the agency from its competition to also ensuring the focus on work and maintaining the deliverables remains intact for your client. Instead of reaching for rewards, there are various challenges that many of these agencies face.
By partnering with a white label service provider, you not only bring industry expertise to your project but also ensure on-time project delivery.
Without you having to bear high overhead costs, partnering with a white-label provider is one of the most cost-effective ways to scale your business. This partnership becomes an effective solution that broadens your service portfolio and fills the critical technology and labor gaps.
For instance, let’s say that you are a web development agency. You get a high-value client but your agency is lacking the expertise required for this project. You can partner with a reputed white-label service provider such as Resourcifi for this project.
Your white-label service provider will not only bring industry expertise to the table but also will allow you to rebrand and resell it to your client. You will deliver it on time and reduce your service delivery cost while establishing a rapport with this client.
At the end of the day, you get to grow your agency’s bottom line by reducing expenses and growing your gross income. Win-win-win!
Attain Industry Specialization to Increase Gross Income
“By specializing, you become an expert in a specific field. This narrows down how many other companies can compete with you for that specialist work.” – Paul Boag (Digital Strategist).
The importance of industry specialization has become quite apparent in the past few decades. Did you know that less than 30% of Fortune 1000 companies in the 1970s are still in business? Lack of specialization had a major role to play in this.
Ogilvy is a perfect example of a successful agency with a huge gross income and bottom line. It specializes in digital marketing for the media and entertainment industry and has 131 offices across 83 countries!
An agency requires a huge pool of expertise and other resources to specialize in a particular industry. A white-label service provider can help you achieve specialization in your industry and help you increase your gross income and thus, its bottom line.
Let’s say that your agency offers web development services in the health & fitness industry. Extending your services to cover mobile app development is significant to complete your industry specialization.
Partnering with a white label services provider that offers mobile development services in the healthcare industry can be a big help! This will allow you to scale your development services in your industry and leave your competitors behind.
The most important factor here is that your agency attains industry specialization & increases gross revenue without significantly increasing your operating costs!
As such, your agency becomes one-stop-shop offering development services for the healthcare (or any other) industry while ensuring bottom-line growth!
Staff Scalability & Reduced Overheads
An agency’s reputation is dependent on the quality of its teams to a large extent! But according to a survey, the biggest resource management challenge agencies face is getting qualified staff on board.
One of the worst challenges that agencies face is making the major mistake of scope creep wherein, changes are made to the project scope without any procedure of control like changing requests of the tasks or project at hand.
More than 50% of projects experience scope creep. Whenever this happens, the profit margins deplete further. How you can overcome this by documenting the project requirements and determining the resources required for the completion of the project.
If some requirements need to be changed, you will have to set up some change control processes at hand. Start verifying the project scope with the stakeholders and engage the project team members to have them in the loop. This ensures that you have the right resources being put to the right use.
Having said that, even if you invest a significant amount of resources in setting up top-quality teams at your agency, you can’t guarantee work for everyone all the time. For instance, one month you could be overwhelmed with new projects and for the next month, you might not have a similar influx of new clients/projects.
As such, in today’s ever-changing market, your agency should be able to make equally disruptive decisions when it comes to scaling up or down teams.
Partnering with a white label service provider will help you efficiently utilize the development resources of your agency. This will especially play in handy with dynamic development and changing influx of clients per month.
With white-level services on your side, your agency can benefit from staff scalability while ensuring an improved bottom line!
Lower Your Service Delivery Costs
In today’s market, your agency must offer competitive pricing on your services to acquire clients. And to ensure that offering competitive prices doesn’t push you out of business, you must maintain a decent profit margin.
The only way to maintain a decent profit margin without charging premium rates is by reducing service delivery costs. The service delivery costs of your agency include operating and overhead expenses invested in delivering a particular project.
Out of many ways of reducing service delivery costs, opting for white-label services is one of the most efficient ones!
A white label service provider offers industry expertise and top-quality services that your agency can rebrand, reprice, and resell to your clients. Here’s how it helps you improve the bottom-line growth of your agency.
White-label services help you save significant agency resources such as hiring costs, employee costs, infrastructure & maintenance costs, and many more. These saved costs can be utilized in acquiring new projects or scaling your agency.
Working with a white-label service provider will definitely increase your administration costs which are insignificant as compared to the saved amount. Reducing service delivery and overhead costs will ensure the growth of your agency’s bottom line.
Bonus: On-time Delivery
Did you know that less than one-third of agencies complete their projects under budget and on time? Do you know why?
Agencies, especially development agencies, face a lot of unexpected pitfalls with high-value projects. And it could be because of anything from lack of expertise & miscommunication to a small team and others.
On-time delivery of quality projects plays a huge role in client retention & building your agency’s reputation as a brand. White-label services will help you with the on-time delivery of your projects.
White-label service providers can help you clear your project backlogs with the required industry expertise and can also independently handle large projects. For instance, our development team uses SCRUM-Agile project execution methodology to ensure quality completion & on-time project delivery.
White-label services help your agency land high-value clients and deliver large projects on time.
Increased Gross Revenue – (Reduced Operating Expenses + Reduced Overheads) = Agency’s Bottom Line Growth!
Final Words
With white-label services, you can build a huge portfolio and create a huge reputation for your agency in your industry. The resultant bottom-line growth of your agency will also allow you to scale your operation and acquire high-value projects.
Resourcifi is a white-label provider of web & app development, digital marketing, and software testing services. Partner with us to reduce service delivery costs and management overheads of your agency. Contact us to know more!
