Alex is Sprintlaw’s co-founder and principal lawyer. Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.
A white label arrangement can help a digital agency sell SEO, paid ads, design, development, content or automation services under its own brand without hiring a full in-house team. The risk is that the client sees your agency as fully responsible, even when the work is performed by someone behind the scenes.
Common mistakes include relying on a short email proposal, promising client outcomes your supplier has not agreed to deliver, failing to control whether the supplier can contact your client, and paying the supplier before your own invoice has been paid. A clear white label services contract helps you set the commercial rules, protect the client relationship and work out who carries the cost if performance drops.
For Australian digital agencies, the agreement should sit neatly beside your client terms, privacy policy and project scopes so there are no gaps between what you sell and what your supplier must deliver.
What a White Label Services Contract Should Control
A white label agreement should make the agency the client-facing brand while setting strict behind-the-scenes obligations for the supplier. It is different from a casual referral, a loose contractor arrangement or a simple software reseller model because the agency usually remains accountable to the end client.
In practice, your client may never know the supplier exists. Your agency sends the proposal, issues the invoices, runs the strategy calls and receives the complaints. That makes the back-to-back drafting critical. If your client agreement or master services agreement says you will deliver weekly reporting, meet a launch date or maintain a certain service level, your supplier agreement should require the supplier to support those promises.
A strong white label services contract will usually cover:
- Scope of services: exactly what the supplier will do, such as technical SEO, Google Ads management, website build work, UX design, copywriting, CRM setup or analytics reporting.
- White label status: whether the supplier must remain invisible to the client, can be introduced as a specialist partner, or can only communicate through approved channels.
- Service standards: turnaround times, quality requirements, reporting standards, review cycles, availability and escalation processes.
- Client ownership: who owns the commercial relationship and what the supplier must not do with the client contact.
- IP and materials: who owns templates, ad creative, code, copy, strategies, pitch materials, source files and reusable know-how.
- Privacy and data handling: how the supplier will handle client personal information, platform logins, customer databases and marketing lists.
- Payment mechanics: fees, retainers, pass-through costs, late payment, chargebacks and whether supplier payment depends on the agency being paid by the client.
- Warranties and liability: what the supplier promises, what happens if their work causes loss, and whether caps or exclusions apply.
- Termination and transition: how active client work is handed back if the arrangement ends.
The agreement also needs to match the commercial model. Some agencies buy services at a wholesale rate and mark them up. Others pay a fixed subcontractor fee per client, a percentage of client revenue, or a project rate. An agency reseller agreement may also include exclusivity by territory, niche or service line. Those terms should be written clearly, especially if the supplier is relying on your agency to bring a steady pipeline of work.
For example, a Melbourne agency might sell a $4,000 per month marketing retainer under an agency retainer agreement to a retail client and engage a specialist paid ads provider for $1,600 per month. If the paid ads provider misses campaign checks or fails to flag overspend, the client will look to the agency. The white label agreement should state what campaign monitoring is required, how quickly errors must be fixed and whether the supplier reimburses the agency for credits, refunds or rectification work.
The key is alignment. Your supplier should not have lighter obligations to you than you have to your client, unless you have deliberately priced and accepted that risk.
Client Visibility and Brand Control
The agreement should state exactly whether the supplier is invisible, partially visible or approved to deal directly with the client. This is one of the most sensitive parts of subcontracting client services because it affects trust, account control and the future value of your agency.
A fully invisible arrangement means the supplier works under your branding. They may use your email address, appear on shared documents as part of your team, or communicate only with your account manager. This can work well for white label SEO, copywriting, web development and reporting support, but it requires careful rules about brand use and conduct.
A partially visible arrangement means the client is told that a specialist delivery partner is involved, but the agency still manages the relationship. For example, your agency might tell a client that technical development work is handled by an approved development partner while strategy, billing and project management remain with the agency.
A direct supplier-client arrangement means the supplier can attend meetings or speak with the client, but only within set boundaries. This can be useful where the supplier needs technical information from the client or platform access, but it increases the risk of mixed messages and client poaching.
Your white label marketing agreement should deal with:
- Use of your agency name and branding: whether the supplier can present themselves as part of your agency and what approvals are needed.
- Email, project management and meeting protocols: who can send messages, who chairs meetings and whether the supplier can join calls.
- Client-facing materials: whether reports, decks, audits and recommendations must use your templates and tone of voice.
- Public credit: whether the supplier can name the client in case studies, portfolios, awards or social media posts.
- Client instructions: whether the supplier can accept changes directly from the client or must wait for agency approval.
- Escalation: what happens if the client complains, requests extra work or asks the supplier about pricing.
Client visibility should also be consistent with your own client terms. If your client agreement says you may use subcontractors, the wording should be broad enough to cover the actual delivery model. If the client expects named team members to perform the work, you may need consent before moving tasks to a white label provider.
Brand control is not just about presentation. It also affects liability under the Australian Consumer Law, which sits in the Competition and Consumer Act 2010. Agencies must avoid misleading or deceptive conduct when describing who is doing the work, what experience the team has and what results are likely. If your sales deck says all campaign work is handled by senior in-house strategists, but the work is actually outsourced to a third party, that mismatch can create legal and commercial risk.
A practical approach is to avoid overclaiming. You can still position your agency as the service provider while saying you use trusted specialists, contractors or delivery partners where needed. The right wording depends on your client relationship, the sensitivity of the services and whether the supplier needs direct access to client systems.
Non-solicitation clauses belong in this section of the deal. The supplier should not approach, service, pitch to or accept work from your clients outside the agency relationship for a defined period. The clause should also cover related entities, staff contacts and leads introduced during pitches. Overly broad restraints can be harder to enforce, so the restriction should be tied to legitimate business interests such as protecting client relationships, confidential information and goodwill.
Service Standards, Warranties and Underperformance
Your supplier should promise a level of performance that allows your agency to meet its client commitments. Without clear service standards, your only remedy may be an awkward argument about whether the work was good enough.
Digital services can be hard to define because outcomes often depend on platforms, algorithms, budgets, client approvals and market conditions. A supplier may not be able to guarantee page one rankings, sales conversions or a particular return on ad spend. However, they can warrant the process, skill and care they will apply.
Useful service standards may include:
- reasonable skill, care and diligence for the relevant digital service;
- compliance with agreed scopes, briefs, brand guidelines and platform policies;
- delivery of drafts, builds, reports or recommendations by agreed dates;
- prompt notification of errors, delays, platform issues or budget risks;
- use of suitably qualified personnel;
- maintenance of required licences, tools and professional subscriptions;
- reasonable cooperation with the agency's account managers and project leads;
- security controls for logins, admin access and shared client data.
Warranties should be specific rather than vague. A web development supplier might warrant that their code will not knowingly include malware, that they will not use unlicensed plugins, and that they will fix defects reported during an agreed warranty period. A content supplier might warrant that copy is original, does not knowingly infringe copyright and has not been generated or sourced in a way that breaches your client requirements. A paid ads supplier might warrant that campaigns will be set up in line with agreed budgets and platform rules.
Underperformance clauses are where many agency agreements are too soft. If the supplier misses a launch date, delivers unusable creative or causes a campaign error, the agency needs practical remedies. These may include:
- Rectification: the supplier must fix defective work at no extra cost within a set timeframe.
- Service credits: a fee reduction applies if defined service levels are missed.
- Step-in rights: the agency can take over, use another provider or contact the client directly to stabilise the project.
- Reimbursement: the supplier covers reasonable costs caused by its breach, such as rework or client credits.
- Termination rights: the agency can end the arrangement for repeated or serious failures.
Payment and liability need to match these remedies. If you must give your client a discount because the supplier failed to deliver reporting for a month, the contract should say whether you can withhold the supplier's fee or recover that amount. If the supplier accidentally deletes client website data, the agreement should say whether restoration costs sit with the supplier, the agency, or both subject to a liability cap.
Australian agencies should also think about consumer guarantees under the Australian Consumer Law. Many client contracts in the business market can limit certain remedies, but some guarantees and protections can still apply depending on the transaction. Your white label agreement should not assume that all client-facing risk can be excluded. If you are on the hook to provide services with due care and skill, you should seek similar commitments from your supplier.
A supplier may ask for a liability cap, such as a cap equal to fees paid over a period. That can be reasonable for ordinary commercial risk, but you may want carve-outs for confidentiality breaches, IP infringement, privacy breaches, fraud, wilful misconduct, unpaid fees and non-solicitation breaches. The cap should reflect the actual harm a supplier could cause. A small monthly SEO fee may sit behind a much larger client account, so a low cap can leave the agency exposed.
One common mistake is accepting a supplier's standard terms without checking whether they disclaim responsibility for platform suspensions, data loss, subcontractors or missed deadlines. Those exclusions may be unacceptable if your client terms place responsibility on your agency. A negotiated white label services contract gives you a chance to close that gap.
IP, Data, Payments and Non-Solicitation
The agreement should make it clear what the agency can hand to the client, what the supplier keeps, and when money changes hands. These operational details often decide whether a white label relationship scales smoothly or becomes a source of disputes.
Intellectual Property and Work Product
IP ownership should be mapped across inputs, deliverables and reusable assets. Digital agency work often combines strategy documents, design files, code, templates, reporting dashboards, ad copy, images, scripts, automations and know-how.
A sensible structure is to separate:
- Agency materials: your brand assets, templates, proposals, strategy frameworks, reporting formats and client information.
- Supplier pre-existing materials: the supplier's tools, libraries, methods, templates and know-how developed outside the project.
- Client deliverables: the final work the client has paid to receive, such as website files, approved creative, copy, campaign assets or documented strategy.
- Third party materials: stock images, fonts, plugins, themes, software tools and platform materials subject to outside licence terms.
Your contract should say whether IP in client deliverables is assigned to the agency, licensed to the agency, or assigned directly to the client after payment. If the supplier only grants a narrow licence, your agency may not have the rights promised in your client agreement. This is especially risky for logos, brand assets, website builds, custom code and campaign creative.
Copyright generally arises automatically in Australia when original material is created, but ownership can be affected by contractor arrangements and written assignments. If a supplier is an independent contractor, do not assume your agency owns the work just because you paid for it. Written IP assignment or licensing terms are usually needed.
Privacy, Platform Access and Data
Data handling terms should reflect the sensitivity of the client systems the supplier can access. Digital suppliers may receive logins to ad accounts, analytics, CRM systems, email marketing platforms, websites, social channels and customer databases.
The Privacy Act 1988 and the Australian Privacy Principles may apply where personal information is handled by an Australian business that is covered by the Act. Even where a small agency or supplier is not covered in every circumstance, many clients will contractually require privacy controls. Marketing activities may also raise issues under the Spam Act 2003, especially where email or SMS campaigns are involved.
Useful data clauses include:
- using client data only for the agreed services;
- keeping logins and admin access secure;
- not copying, scraping or reusing client customer lists;
- deleting or returning data when the project ends;
- notifying the agency quickly about suspected data incidents;
- following client consent, unsubscribe and marketing list instructions;
- limiting access to approved personnel and approved subcontractors.
If the supplier is overseas or uses offshore contractors, the agreement should address cross-border data handling and approval rights. Some clients, especially in health, finance, education and government-adjacent sectors, may have strict data location and security expectations.
Payment Timing and Cash Flow
Payment timing should not force the agency to fund supplier work indefinitely where the client has not paid. Many agencies operate on tight cash flow, especially when retainers are billed monthly and suppliers invoice in advance.
You can structure payment in several ways:
- Pay when paid: the supplier is paid after the agency receives cleared funds from the client, subject to any restrictions and fair drafting.
- Fixed monthly supplier fee: the agency pays a set amount regardless of client payment, often where the margin is higher or the client risk is accepted by the agency.
- Milestone payments: payments are linked to defined project stages, such as audit completion, design approval, development handover or campaign launch.
- Prepaid blocks: hours or deliverables are paid upfront, with clear expiry and rollover rules.
- Revenue share: the supplier receives a percentage of client revenue, with audit rights and clear calculation rules.
The agreement should also deal with disputed invoices, client refunds, scope creep, urgent work, out-of-pocket expenses, software costs and ad spend. Ad spend deserves special treatment because it is often paid directly to platforms and may not be part of the supplier's fee. If the supplier manages budgets, the agreement should require approval before increasing spend or changing billing arrangements.
Late payment clauses should be practical. A supplier may want the right to suspend work if unpaid, but sudden suspension can damage your client relationship. The agreement can require notice, a cure period and continued support for critical services during transition.
Non-Solicitation and Confidentiality
Non-solicitation and confidentiality clauses protect the commercial value of the relationship, not just the current project. A supplier may learn your pricing, margins, sales pipeline, client decision-makers, strategy and internal processes.
Confidential information should include client lists, proposals, pricing, briefs, login details, campaign data, sales leads, trade secrets, unpublished materials and internal workflows. The supplier should only use that information for the agreed services and should ensure its staff and subcontractors follow the same rules.
Non-solicitation wording should be targeted. It may restrict the supplier from approaching your clients, accepting direct work from them, inducing your staff or contractors to leave, or using your leads for their own benefit. The restriction should last for a reasonable period and apply to clients or leads the supplier actually encountered through your agency.
If the supplier wants reciprocal protection, consider whether that is fair. For example, your agency may agree not to poach the supplier's key staff, but you may not want a broad clause that stops you from working with other developers, designers or media buyers.
FAQs
Is a White Label Agreement Different From an Agency Reseller Agreement?
Yes, although the terms can overlap. A white label agreement usually focuses on a supplier delivering services under the agency's brand, while an agency reseller agreement often focuses on resale rights, pricing, territories and how the agency can sell a product or service to end clients.
Do I Need To Tell My Client I Am Using a White Label Supplier?
It depends on your client contract, your sales claims and the nature of the work. You should avoid statements that could mislead the client about who is performing the work, and you should check whether client consent is required for subcontracting, data access or specialist delivery partners.
Who Is Liable if the Supplier Underperforms?
The client will usually look to your agency first if your agency is the contracting party. Your white label services contract should then set out when the supplier must fix work, reimburse costs, provide credits or indemnify your agency for losses caused by the supplier's breach.
Can the Supplier Use the Work in Its Portfolio?
Only if the agreement allows it and any client confidentiality obligations are satisfied. Many agencies prohibit portfolio use without written approval because the work may reveal the client relationship, the agency's white label model or confidential campaign details.
Should My Client Terms Match My Supplier Agreement?
Yes. Your client terms and supplier agreement should be back-to-back where possible, especially for scope, deadlines, IP rights, confidentiality, privacy, warranties, refund exposure and termination. Any gap is a risk the agency may need to absorb.
Key Takeaways
- A white label agreement for a digital agency should define the supplier's role, client visibility, service standards and responsibility for underperformance.
- Client control matters. Set rules for branding, meetings, communications, portfolio use and non-solicitation so the supplier cannot undermine the agency relationship.
- Warranties should focus on process, quality, compliance and delivery rather than unrealistic guarantees about rankings, conversions or revenue.
- IP clauses should confirm whether deliverables are assigned or licensed, and should separate agency materials, supplier tools, client work and third party assets.
- Payment terms should address cash flow, client non-payment, disputed invoices, ad spend, scope creep and suspension rights.
- Privacy, confidentiality and data security clauses are essential where the supplier can access client platforms, customer lists or marketing systems.
If your agency is reselling SEO, paid ads, design, development or content services under your own brand, Sprintlaw can help with your supplier agreement, client terms, IP ownership clauses and privacy protections. Call 1800 730 617 or email team@sprintlaw.com.au for a free, no-obligations chat.
Make the contract match the deal
What should you test beyond the template?
Scope, payment, dependencies, liability, IP, change and exit clauses should work together for the actual relationship. They should not just read well in isolation.








