What digital marketers should know before white labeling their products

Digital marketing is special not only because of the various technologies used but also for creating a new marketing lingo. To succeed in online marketing, it is essential to get a grasp of the language spoken in digital marketing circles in order to understand precisely the activities being talked about. For example, if you do not understand what is meant by white label PPC, you might be left confounded. The term often used interchangeably with the private label has a commercial connotation attached to it.

White labeling relates to the process of creating a product or service and then removing the marks of brand or logo from it thereby leaving it open for use by anyone else by imprinting their brand or log on it and stock market opens. The process makes it appear as if the brand name appearing on the product is its creator, which it is not. Like many of the products you see on Amazon or Walmart are not manufactured by them, but by using the white labeling technique, they affix their tradename on it thus making it appear to be their own product.

White labeling in digital marketing

White labeling is very common in various online marketing products especially PPC and content marketing. However, private label marketing in the digital space is not at all like the re-labeling of Amazon or Walmart. The difference stems from the type of product because often there are no commodities transacted in digital marketing that primarily trades on services. Unlike selling only physical products online like Amazon or Walmart, digital marketing comprises of selling services to its clients. Therefore, white labeling in digital marketing revolves around putting your own brand name or logo on some services that some other company has created and then selling it as if it is your own.

The working modality of private labeling

You would find enough similarity between the way private labeling works in digital marketing with the outsourcing of services. The Company that creates a service allows you to sell it to your clients under your own brand name while they provide all support and services by remaining invisible and anonymous. The client looks upon you as the service provider never knowing who the real company is behind it. The private label company does the back-end work while you become the middleman between your client and the actual service provider.

Many digital companies offer a bouquet of services that includes, SEO, PPC, Social media marketing, etc., but on probing you might find that except for basic SEO services they might be selling private label products to their clients. However, for providing better customer experience, some companies prefer to use the front-facing model of private labeling that enables interaction between clients and the actual service provider. Which model suits you best depending on your business goals and the way you want to handle your customers, but the choice of business model has no impact on the quality of services.

End to end support

The private label company that owns the product becomes your partner in progress. They work alongside with you right from the time you zero down on a prospect that has shown interest in some of the services that you have offered. Some private label companies have a digital marketing strategist who will work with you to research the prospect as well as two or three of their top-level competitors. This is followed by close interaction with the prospect to understand their objectives and goal to work out the solutions that should help them in achieving it. Remember that the during the entire journey only your brand name remains visible. Your client will never know the company that does the heavy lifting on your behalf.

Develop a relationship with the service provider

As the fortunes of your business depend on the performance of the service provider with whom you enter into a private labeling arrangement, you must develop a cordial and congenial relationship with them that makes the partnership work like a well-oiled machine. Initially, you must keep a close tab on the customer experience to understand how things are working but after some time, the service provider takes up the reins, and you get more time to focus on other core areas of your business.

The operational format

 You must share with the service providing company the relevant email addresses in your customer database to enable them to communicate and interact directly with your customers by maintaining complete confidentiality. Even the reports they send to the customers would bear the logo of your company thereby enabling you to carry on the business in your brand name. Even there are ways of suppressing the identity of the service provider during phone calls with customers.

Conference calls – If you have few customers, it is better to opt for conference calls to talk to them as it provides a neutral platform to talk to customers without letting them know the number from where the call has been made.

Direct calls – By providing a service number like 1-800 customers can access all service support from the service provider directly without ever knowing their identity and they assume that they are talking to you. The receptionist who receives the call can identify the private labeling company for whom the call is meant and responds accordingly.

Starting with the conference call plan is a cost-effective option, and as the customer base increases, you can upgrade to the direct call package.

Front end or back end model?

The backend model is most prevalent in private labeling in digital marketing because most companies are interested in playing a role in the arrangement. Although you will not be doing anything except for giving lip service, the way you position your company has something to do with the company image. By concealing the real service provider, you can demonstrate that yours is a strong company with impressive credentials that help to claim your place among the important players in the field.

The frontend model also has its advantages as it has fewer layers and is easily scalable.

Your business policy and vision should help to decide which model suits you best.

  Modified On Jun-02-2020 06:05:40 AM

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