— Mark ZuckerbergThe biggest risk is not taking any risk… In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking risks.
Seems more apt now than ever, doesn’t it?
No one ever became the big shot without taking the risk, true. But they didn’t take the risk without working on all the measures to mitigate or as we say, working out a “Plan B.”
No business is ever run without taking the risk. As an owner, you must have taken risks of failure while taking up some projects or committing unrealistic timelines. This all is true in white label partnerships, too. Just like you minimize the risk of failing the project by taking the help of an expert agency, there are also a few instances where more risk is involved in working with such agencies.
A white label partnership refers to a collaboration between two agencies, where one agency provides the services and solutions under the branding of the other agency. And just like every good thing in the world, this, too has its pros & cons.
White Label Partnership: Let’s Minimize Risk & Challenges Together
A white label partner helps your agency deliver the service to your client that you do not offer generally and in many areas of operations.
- Cost Effective
Hiring a white label partner for a one-time project is always better than hiring an entire crew. Not only do you save money but you can also save time. The time that you were going to spend hiring a team & training them, is now going to be invested in the more important creative and strategic aspects. And needless to say, “Time is money, my friend!”
- No More Idle Workforce
Has it ever happened that you hired a few people just because there was a huge project which needed manpower, but now that project is over and that talent is just sitting idle in the corner, coming to the office just to have lunch? An idle workforce is not only a risk to your finance but a risk to your office environment, too. It becomes very hard to drive people to do something productive when indeed they have nothing to do!
White label partnership saves you from just this. One such partner, White Label IQ works on a zero-commitment basis, which means, you can hire them when you have a project & when it is over, you can bid adieu with no strings attached!
- Balanced Work Allotment
It’s not a piece of news that many times one team will be working more hours than other teams. This is generally when there has been a churn or an acquisition. Improper work allotment affects your team’s motivation & focus.
With the help of a white label partnership, you can avoid this completely. The usual working method of white label partnership is project-based. Which means, no project, no partnership.
- Delivering Expertise
The white label partnership provides an effective solution for businesses to access the expertise they don’t have in-house. By partnering with a white label provider, you can take on new projects outside your team’s expertise and deliver high-quality solutions to clients.
With the help of a white label partnership, you don’t only take out the risk of delivering something non-performing because of your team’s lack of expertise but also expand your offering.
What Kinds of Risks to Keep in Mind While Working With a White Label Partner & How Do You Overcome Them?
- Intellectual Property Theft
Whenever intellectual property is shared between companies, there is always a risk involved. This means that valuable ideas or designs can be stolen. For example, you might have a trademarked product design, but a white label company could accidentally expose it.
Besides potentially stealing designs, an unethical white label partner could also try to steal customers from the other company. For instance, if a service provider is directly interacting with your clients, they might try to redirect those clients to a competitor they also work with.
To avoid such incidents happening, it’s important to have a well thought contract drawn between your agency & your white label partner. Which clearly exhibits permitted usage of your & your client’s intellectual properties.
- Potential Liability
When you involve a white label partner in your project, it automatically develops an unspoken liability. If a strategy developed & executed by your white label partner fails, the ownership of the failure is going to fall on you. Hence it becomes very important that you thoroughly scrutinize the expertise that your partner is bringing in. As they say, precaution is better than cure!
- Less Control
Obtaining a high-quality product under your own brand is a major benefit of a white label partnership. However, it can become a risky situation if the product’s quality falls short. In such cases, your brand will suffer the consequences of the subpar quality provided by your white label partner. That’s why it is essential to thoroughly assess the product and service quality before moving forward with the white label partnership agreement.
Conclusion
In conclusion, white label partnerships can be a strategic move to minimize risks and overcome challenges in business. By collaborating with a white label partner, you can access cost-effective solutions, avoid an idle workforce, achieve balanced work allotment, and deliver high-quality expertise to clients.
Taking precautions, establishing clear contracts, and thoroughly assessing the partner’s capabilities can help mitigate these risks and ensure a successful white label partnership. Remember, with careful consideration and planning, white label partnerships can be a valuable asset in driving business growth and expansion.
