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White-label products are items manufactured by a third party but sold by retailers under their branding and logo. With a white label solution, the manufacturer produces the items using the branding requested by the purchaser or marketer, rather than its own. As a result, the end product appears as if it has been produced by the purchaser. But what does this mean for intangible products and services and what can 8 Figure Agency do for you when it comes to the perfect white label solution?
The Problem
Many founders reach a plateau in their business growth, especially those generating between $50k to $200k in monthly recurring revenue (MRR). At this stage, they often face significant challenges:
Capacity and Time
Founders are overwhelmed with multiple roles, including operations, sales, marketing, team management, project management, and account management, while their teams are stretched thin and lack the systems needed to scale.
Financial Constraints
Limited profits or the need to maintain current income levels prevent them from hiring additional staff, creating a catch-22 where they need more resources to grow but can’t afford to reduce their profit margins.
Client Base
Leveraging a white-label partnership may not have a significant impact with a small number of clients, such as 5 clients. However, a larger client base, ranging from 30 to 100 clients, presents greater opportunities to cross-sell additional services and increase revenue.
The Solution
White labeling can be an effective strategy for businesses stuck in this growth rut. Here’s how it works:
Assessing Capacity and Time
If the founder and their team are at full capacity and unable to handle more work, delegation becomes essential. White labeling offers a solution by allowing them to outsource services to a capable partner who can deliver effectively, thereby freeing up valuable time and resources for other critical tasks.
Financial Strategy
Instead of expanding their staff, founders can utilize white label solution partners to broaden their service offerings without the need for substantial upfront investments. This approach enables them to maintain or potentially increase profit margins by introducing new services to their existing client base.
Leveraging Client Base
Businesses with a substantial client base can greatly enhance Monthly Recurring Revenue (MRR) by cross-selling white label solutions, such as SEO packages. The additional revenue generated from these services can be strategically reinvested into the business to hire key roles and effectively delegate responsibilities, facilitating further growth and operational efficiency.
The Results
One of 8 Figure Agency’s clients exemplifies the success of this approach. He had 50 clients on web hosting and around 10 on Google Ads services. By cross-selling an SEO package to these clients through a trusted white label solution partner, he was able to:
- Increase MRR: The additional revenue from the SEO services provided the financial cushion needed to make strategic hires.
- Delegate and Scale: With the new hires, the founder could delegate more tasks, freeing up his time to focus on strategic growth initiatives.
- Achieve Sustainable Growth: The combination of increased MRR and better delegation led to sustained growth and improved operational efficiency.
The perfect white label solution can be a game-changer for businesses struggling to break through their growth plateaus. It provides a scalable solution that leverages existing resources while mitigating financial risks.
Follow @jordan_ross_8f for more tips on scaling. If you need help implementing this or finding the right white label solution partner, DM me. I’ve vetted hundreds of agencies and have a list of partners you can trust.
