As more people want to create videos, the agency needs to decide how to get that done. Some agencies will say they would like to create their own team of video producers within their agency. Through the hiring process, or by utilizing an outside third party that provides video production services. Some agencies will choose to have an internal team. Typically viewed as the more difficult option. Due to the costs involved with hiring somebody new, buying equipment and software licenses, and training them. While there will be costs associated with having a production team in-house. Many agency owners are examining their own businesses and determining if they should be creating their own videos or outsourcing.
If your agency has grown quickly, has had variations in workload, or is under pressure to keep your margins. Then you may need to answer this question relatively soon.
7 Signs White-Label Video Production Has Become More Cost-Effective for Your Agency
1. Your Team Is Spending More Time Managing Projects Than Growing the Business
As more and more video production projects are created by companies, many of those same companies are overwhelmed. With scheduling, coordination, revisions, and production logistics. Rather than spending their time growing their business and developing client relationships. Companies spend a lot of their time executing day-to-day processes related to video production.
A white-label production partner can take on the full workload of producing a video project. Allowing your internal video production team to focus on non-revenue-generating activities and long-term development/growth strategies.
2. Hiring New Employees Can Cost More to Outsource Work than it Does to Hire New Employees
A full-time video production team has many costs associated with it that need to be factored in. These include the costs of hiring new employees, benefits, training, office space, software licenses/subscriptions, and the cost of managing employees.
When project volume fluctuates, many of the associated fixed costs remain the same, regardless of the volume of work to be done. By utilizing a white-label production partner, your fixed costs associated with video production projects can be converted into variable costs, allowing you to only pay for the video projects that you need to produce.
3. Video Demand Is Growing Faster Than Your Internal Capacity
Many companies experience an increase in demand for video services to the point that their current staff cannot manage. New deadlines can then overwhelm staff members and lower the quality of video production.
White-label video production gives you access to experienced video professionals immediately without the time and expense of hiring and training new staff members.
Additional Read:
Outsourcing Video Shoots: A Guide to White-Label Production Services
4. You Frequently Turn Down Video Opportunities
Every project that is turned down by an agency represents money lost in revenue. Many agencies will refuse to accept additional video project work due to not having enough resources (expertise or personnel) at their disposal.
Utilizing a dependable white-label vendor partner enables agencies to pursue more substantial project opportunities, offer a greater number of services, and pursue a larger number of potential work opportunities that would have previously been unattainable.
5. Equipment and Software Costs Are Increasing
Creating professional-standard videos requires a lot of equipment that is costly to purchase, e.g., cameras, lights, audio gear, production software, storage systems, maintenance, etc.
The technology associated with video production is changing quickly, and you need to keep upgrading your equipment if you want to stay competitive. With a partnership with a white-label production company, agencies get access to professional-quality equipment and expertise without the financial responsibility of owning it.
6. Project Workloads Fluctuate Throughout the Year
No agencies have completely steady workloads from month to month. There will be certain months where an agency has a high volume of client work and certain months that will have a much lower volume of client work.
The cost of maintaining a fully staffed production team for those months when an agency has lower volume will become expensive. White-label production gives an agency the flexibility to either increase or decrease its resources based on its current demand, which will allow an agency to have profitability all year round.
7. Your Profit Margins Are Starting to Shrink
Increasing operational expenses can start to shrink your profit margins. More employees, startup software licenses, and equipment purchases have an impact on the profitability of video projects.
White-label partnerships often help agencies with cost-effective ways to save on business operation/equipment startup costs while still maintaining high-quality products and services. This can help an agency maintain its margin. Creating more efficiency in its overall business, allowing it to improve its actual bottom line.
Why Many Agencies Transition to White-Label Video Production
The successful agencies know that growing doesn’t mean they have to build up their own team. Instead, often by using white-label partners, they can grow faster, have more clients, and stay nimble in their market.
With this strategy, agencies can put their effort into strategy, client management, and new business. While letting production specialists handle the execution of the project delivery.
By using this approach, agencies are able to streamline the way they work as well as create a business model that is more predictable and scalable.
Conclusion
When the expenses of producing a video internally start to outweigh the advantages, then white-labeling video production is an economical way of producing videos. If you are experiencing much greater demand, higher operating costs, declining profit margins, and/or capacity issues, then you should look at a white-label production partner.
Utilizing highly skilled personnel, flexible resources, and scalable systems through video production allows you to expand without the expense and overhead of developing your own larger in-house staff to produce video content. This will create more efficient operations, improved profitability, and give you the ability to focus on what you do best – grow your business- while providing superior quality video content.
