Discreet Subcontracting: Make Money on New Types of Services or Toss Those Overload Projects or Tasks a Little Beyond Your Realm to Us. We do the Work. You Take the Credit
- Jul 12, 2024
- The Big Innovations Team
- Phoenix, Arizona
We can make your company seem deeper & more resourceful than how it appears now. This can make your clients perceive greater VALUE in your business relationship
HOW BI WHITE LABEL SERVICES MAKE MONEY FOR YOUR COMPANY
The term "white label" was originally associated with manufactured products intended to be re-branded by a reseller. For example, an electronics manufacturer might build a television and then some other company puts their own brand mark or logo on it as if they built it themselves. Products like Apple iPads, iPhone and Mac computers are not entirely made by Apple employees in Apple-owned factories. Instead, subcontracted companies completely build those products for Apple and brand them with Apple's logo... implying to retail buyers that they were actually made by Apple.
White labeling is an extraordinarily common practice- a way to expand the perceived breadth of company products or services without that company having to actually retain all of the cost, infrastructure, etc. And it's not just an electronics industry practice.
You probably buy white-labeled products in MANY retail settings each month. Those grocery store brands with the grocers logo on them are almost certainly not actually made by grocer staff. They probably didn't actually make that soup, those soft drinks or those snack chips, etc. Instead, some of the name-brand products sold right next to grocer-branded products may have packaged those products FOR your grocer.
If you currently work with any contracted services at your company, they may be serving you with some white-labeled services. If that service provider subcontracts any of their services out to others but then presents those services as if they fulfilled them themselves, that subcontractor(s) is your contractor's white label service provider. You may not even be aware- but probably wouldn't care anyway- that this is happening. As long as you get what YOU want or need out of that relationship, what does it matter if your contractor did the work or someone who works FOR them?
In other words, the subcontractor is providing services for your company without requiring that you be specifically aware of their involvement... very much like you may not be aware that Foxconn International Holdings Ltd (or similar) is the company that actually built your Apple iPhone or iPad. Your contractor is billing for their services as part of the overall bundle of services they provide for your company. Much like the grocery store example, the implication is that your contractor is doing ALL of it themselves when, in fact, they are simply taking credit for a subcontractor's work on some services.
IS THERE ANYTHING WRONG WITH THIS ARRANGEMENT?
Not at all. It's a mainstream way for many- perhaps MOST- products and services to be fulfilled. And it's a win:win:win for all involved. A simple example can be worth a thousand words. In this one, YOU are Apple, your clients are Apple product buyers and BI is Foxconn, Apple's white label contractor behind the scenes...
WHITE LABEL WIN:WIN:WIN | ||
ROLE | WHITE LABEL ACTION |
RESULTING EXAMPLE |
---|---|---|
BI | As your subcontracted specialists, we are certainly happy to have the new business you toss to us | Foxconn doesn't refuse all that revenue from Apple because Apple wants their own brand on the deliverables |
Your Company |
You are happy to have a skilled subcontractors cover some tasks you can't- or don't want to do- yourself | Apple doesn't want to endure the cost and infrastructure to build iDevices themselves |
Your Client |
Your client is happy because they get ALL of the benefits of a job well done by "your" firm | They appreciate your work and think of you first when they need more services in the future |
See how nicely that works! Choose to white label our services and the range of services you can sell to YOUR clients spikes up to include the complete range of services we sell to OUR clients. You don't have to:
- invest decades in learning to do all we do,
- staff up with a bunch of very talented experts that already work for us.
- write a massive check to acquire us.
From your client's perspective, it can just SEEM like you did... because now you have all of our brains & horses appearing to work for YOUR company. In white labeling, all three parties- you, your client and BI- get something they value out of the engagement. There are no downsides.
DO WHITE LABELING SERVICES ACTUALLY WORK?
Of course! We do it ourselves. This is how we get great work done for our own clients.
When engaged for a new project, our core team taps into our robust network of specialized subcontracting experts to cover specific parts of the project. If our client would rather manage the work directly, we'll connect them and they can oversee the individual relationships and all of the nitty-gritty of the project.
But... almost EVERY time... clients only want the job done well... with low-to-no contractor maintenance on their very busy plates. BI MANAGES the various subcontractors and delivers the projects and/or services as a bundle under the BI brand.
- Our clients gets high quality deliverables done by the best talent for whatever they need.
- We get paid by that client to manage the contributing talent and maximize the quality of the work.
- Our subscontractors get paid to do the work they love without having to burn tons of time chasing new gigs.
White labeling our quality services is WIN:WIN:WIN!
You can do what we do... except, instead of having to find, test, vet, evaluate, scale, etc your own network of all of the kinds of talent needed to replicate our service mix, you can simply use BI as a "one-stop-shop" for our services.
Technically, this would be subcontracting to us who then probably subcontract some parts to others, but your clients won't care: they simply want a job done well. We will do that for you and you get the credit- and lasting business halo- from your client.
WHITE LABELING CAN GO BOTH WAYS
Sometimes our clients need a service that is a bit outside of our core competencies. We could turn down that service because it's not really our kind of thing or- if we knew someone(s) very talented at that particular service- we could refer our client to them and/or white label THEM under the BI brand.
In the latter, we are basically EXPANDING the range of services we can offer to also include this new service... not by having to become experts at whatever it is but by utilizing an existing expert under our brand. Some of BI's existing breadth of services has come about EXACTLY this way. As we've discovered the BEST talent for things a bit beyond our core, we sometimes expand our core to incorporate what what talent can do.
Depending on your own range of expertise, this relationship can work BOTH ways like that. You use us to expand your service offerings and we can use you to expand ours.
SUBCONTRACT YOUR OVERLOAD TO US
There are also situations where BI competitors may have some overflow/overload work and need extra expertise to get their job done on time. Rather than delay that work or potentially turn it away, we can be hired as a kind of super-"temp" to cover that overload FOR (even our own) competitors. We don't care if our competitor will get the credit for our work. They pay us, we do a great job like we are a part of their company and they take 100% of the credit for our work.
Do competitors white label with other competitors? Of course. Again, those grocery-branded potato chips are probably made by one of the other brands sitting on that very same shelf. The actual manufacturer gets paid to produce and package potato chips EITHER way. The manufacturer would much rather have the EXTRA business instead of letting one of their competitors get it.
HOW MUCH MONEY CAN I MAKE?
Short answer: whatever your market will pay, minus whatever you pass through to us to do the hard work for you. If your client needs a bundle of BI services, we will work with you- as if we are one of your employees- to assess their needs. Once we pin down those needs, we'll be able to estimate project timetable and our fee to do those things. You add whatever markup you want and that extra money is yours to keep.
Like any business, markup is whatever you can get. It is the profit on your total costs. 10%, 20%, 50%, 100%? Since they are already your client, it is likely you will already have a good feel for what they would pay, so you can dynamically set your markup at a level they would accept.
OR, perhaps your client will volunteer their budget for a project. If they shared it was- say- $250K to do a number of things that BI could fulfill and we priced actually doing the work at- say- $150K through you...
- that $100K profit would be YOURS...
- plus the appreciation & credit from your client...
- plus that lasting halo for a job well done.
Why do we welcome letting you enjoy all three of those delicious benefits? You've brought us a new project- one that we may not have otherwise been able to discover on our own- that gives us $150K in revenue.
Of course, not all projects are quarter-million dollar ones... but- bigger or smaller- the mechanics of it work exactly the same: we share what we would charge to do the work with you, you add whatever you want in profit on top of our quote, your client accepts, we get to work making them happy and you enjoy the extra profit. They pay you, you pay us, we deliver through you to your client.
3 STEPS TO EASY WHITE LABEL REVENUE
- Pitch BI Services to Clients in Need.
- We Discreetly Fulfill Those Services.
- You Enjoy the Benefits!
If your business is also a B2B entity, this is a great & relatively EASY way to expand your billings with existing clients and/or win brand new clients. Let's illustrate the concept with one more example...
An accounting business would be especially well suited for white labeling BI services. The accountant would have intimate knowledge of their client's business trends and growth objectives. When that client is seeking something that BI could fulfill, the accountant could let them go find someone else to cover that need... OR they could offer to render that service themselves... under their own brand... casting a while-label illusion that their business is more than only an accounting firm...
"Actually... we're a business services firm.
Accounting is only ONE of our services"
If the accountant ignores the opportunity, their client will seek out some source to fulfill those needs. That carries some risk if that source happens to also offer the accountant's services... because they may subsequently steal that core business away from the accountant.
If the accountant wanted to use BI's white-label service, he or she would brief us on the situation and facilitate an introduction. BI representatives would then work out the scope of the clients needs, draft the proposal, attempt to close the deal and then execute the project or service- all under the accountant's business entity umbrella. A good share of the revenue for the engagement would be retained by the accountant even though they may effectively be up to entirely done with the project before the hard work portion actually begins.
The end result should be a happy client that thinks of the accountant's business when they have OTHER needs within the diverse realm of what BI can provide.
- The client wins by getting what they want done at a very high level of quality.
- The accountant wins in the profit made on the project or service BI fulfills... AND in further cementing their relationship with this client... AND in avoiding the risk that whoever the client might use instead also luring away their existing services gig... PLUS the potential for more white label projects (and easy added profits) in the future.
- BI wins by being discreetly paid behind the scenes to do what we do.
Does this example mean ONLY accountants are good white-label partners? Not at all- this was only an example. How about Realtors who- in the course of selling a new home or commercial property- get a sense that the buyer runs a business(es) and needs BI-type services? How about the Barber who in doing their thing, chit chats with executive clients who talk about wanting to grow their businesses or overcome some problem at work? How about the golf buddy sharing some challenges or issues at work? Etc.
Think about ALL of those social situations where work topics reveal relevant wants... to start a business, grow a business or solve some business problems. Those can be alarm bells... profitable alerts to your ears to connect those people with BI.
SO WHAT DOES IT TAKE TO WHITE LABEL BI SERVICES?
Your part would be getting familiar with the scope of services that BI can fulfill, then diligently watching for client needs for our kinds of services. The easiest way to do this is to browse around this website and interact with BI as needed to get any questions answered.
Your client might present their wants or needs positively, such as wanting to augment good things they're already doing... or negatively, such as classic business gripes about sales not going as well as hoped or their marketing ROI moving in the wrong direction, etc.
Either way, when you recognize a need that BI can fulfill, you ask some questions to try to get a better feel for that need. This attempt to frame the want or need as good as you can will help you better prepare us to work with them on your behalf. Some key discovery objectives are:
- level of genuine interest in doing something. Basically, are they venting or are they serious about taking tangible action?
- are they open to outsourcing the project or service?
- budget*: are they willing to spend money to realize the objective and, if so, what is the approx. budget size?
- timeline: any targeted dates for making it happen?
- develop the best possible description of exactly what they seek
- etc.
*NOTE: On that important topic of budget size, if it is basically baby-sitting money... that is, they seem to be looking for and/or needing potentially months of work from a number of skilled professionals but have only peanuts to offer... there's very little here for you or us. It's highly unlikely that a minnow gig can be turned into a whale.
If you would like to make tens-to-hundreds-of-thousands of dollars from this, our billings through you are probably also tens-to-hundreds-of-thousands. A prospect talking about a budget of hundreds or only a few thousand has no capacity to deliver even ten thousand to ONE of us.
A similar issue of getting you lucratively rewarded applies for those prospects who want to pay with all variations of "future potential," illiquid stock or stock options, no-cash "partnering," Aunt Meg's secret cookie recipe, hogs & chickens and so on.
Hey, We like bacon & wings as much as anyone, but would rather BUY THEM WITH CASH earned from our hard work instead of MAKE them from farm animals. 😉 Very simply: do your best to verify you have a serious prospect with CASH available to make this worth your- and our- time.
BI services are always best-in-class, so white labeling our services under your brand should associate the BI "WOW!" with your client's view of YOUR company.
It may also protect an existing business relationship by fulfilling our kinds of services under your brand rather than allowing some other firm to fill those needs... then potentially luring your client away from you because they also offer your existing services.
CONTACT US if you would like to further discuss white labeling solutions to help your business- and your client's businesses- grow.
One more thing: We also offer a very lucrative referral program as ANOTHER way to make relatively easy money by introducing BI services. It works mostly the same way- we do the hard work for your clients- except in that one, BI is not hidden behind your own brand. It is also great & EASY way to profit by offering BI services to your client.