Pricing white-label services effectively is one of the most critical steps for agency growth and profitability. The right strategy not only ensures healthy margins but also positions your agency as a trusted partner for your clients. In this blog, we’ll walk through three best practices to price your white-label services in a way that balances value, transparency, and profitability.
1. Implement a Strategic 1.5x Markup for Healthy Margins Without Overpricing
A simple yet effective pricing approach is applying a 1.5x markup to the cost of your white-label services. This ensures:
Sufficient Margins: Covers your operational costs while generating a healthy profit.
Market Competitiveness: Keeps your pricing in line with market standards to avoid client pushback.
This multiplier strikes a balance between value and affordability. For example, if a white-label partner charges $1,000 for a campaign, you can present it to your client for $1,500. This approach ensures you’re compensated for your time and expertise while keeping your client satisfied with the cost.
2. Tailor Pricing Based on the Service Type to Maximize Value
Different white-label services offer varying levels of complexity, ROI, and client perception. Adjusting your markup based on the type of service helps ensure you’re pricing for maximum value.
Service-Specific Strategies:
High-Value Services (e.g., SEO, Paid Media): Consider slightly higher markups (1.6x-1.8x), as these services deliver measurable ROI and are perceived as high-impact by clients.
One-Time Deliverables (e.g., Website Design, Content Creation): Keep margins tighter (1.4x-1.5x) to remain competitive and align with client expectations for these project-based tasks.
Premium Offerings (e.g., Programmatic OTT, Advanced Analytics): With more sophisticated solutions, higher markups (2x or more) may be appropriate to reflect their specialized nature and results-driven appeal.
This tailored approach ensures each service is priced according to its value, complexity, and impact, reinforcing your agency’s expertise while safeguarding margins.
3. Position Value First with Transparent Communication
Clients don’t just buy services—they buy results. By positioning your pricing through the lens of value and ROI, you create trust and reduce price sensitivity.
How to Communicate Pricing Effectively:
Showcase the Benefits: Use real-world examples, case studies, or performance metrics to illustrate how the service will directly impact the client’s goals.
Bundle Services: Offering packages (e.g., “SEO + Paid Media Campaign”) not only simplifies decision-making but also helps justify premium pricing.
Be Transparent: Explain what goes into your pricing. For example, highlight that your agency includes white-glove service, performance tracking, and reporting alongside the core deliverable.
Positioning value first shifts the conversation from "how much does it cost?" to "how much will it deliver?" This approach minimizes pricing objections and reinforces your role as a trusted partner.
Bring It All Together: An Example
magine offering a white-label Google Ads campaign that costs $2,000 from your partner. Here’s how you might price it:
Apply a 1.5x Markup: Present it to your client as $3,000.
Tailor Based on Service Type: If it’s a highly competitive industry, consider adjusting to 1.6x for $3,200.
Position Value: Highlight ROI metrics (e.g., "This campaign drives $10,000 in monthly revenue for similar clients") and offer bundled add-ons like retargeting or analytics dashboards.
Next Steps
Looking for more insights and strategies? Check out our blog, How to Adapt to Changing Client Needs without Upheaving Your Agency.
Curious how Conduit Digital’s white-label services can help you deliver measurable ROI and scale with confidence? Let’s talk about how we can help streamline your pricing strategy.
