Collaborating Together To Achieve Your Mission
We have built strong relationships in the form of partnerships with a number of our clients and is a profitable element of our business model. As an established advertisement agency, we have a number of strengths, but also a number of weaknesses.
Alliance and Partnerships
XLab’s Strength: Our ability to acquire customers
Our main focus is always on ‘acquiring customers’ and ‘marketing’. Even if a client’s industry is new to us, we will utilize our network as an advertising agency and implement the best plan and target the best media outlets.
So our weakness is… that our gross profit rate is low
The advertisement agency business revolves around receiving a percentage commission of the advertisement investment. This can range from a few percent to 20% at the highest. However this is just gross profit. Therefore from this amount, costs and expenses are subtracted. This business model is sustainable as long as results are delivered, however as you can see, for the amount of effort required the profit sometimes may be too small.
Taking advantage of our strength while compensating for the low gross profit
We take away our client’s risks by implementing a revenue-share system. To be more specific, we offer our clients the opportunity to not have to fund their advertisement costs, in return for sharing a percentage of their overall profit.
If the campaign doesn’t generate a profit, then XLab will be bearing the risk of incurring the costs of website/system development, labor costs and of course the advertisement costs as well. The risk could be as much as a several million yen. However, if the campaign is successful, then we could expect a larger return than these risks.
For our revenue partners, there is no substantial risk; therefore, it’s easier for them to make an approach into a new market. Then, when a profit is generated, the profit is shared, and is a business model with a lot of merits.
When in need, we support promising businesses
It is an inevitable fact that a capital is needed in order to run a business. When there is a merit for both parties and the business is a benefit to society we will positively consider it as an investment opportunity.
As Alliance Business opportunities are built based on mutual agreement toward partnership, both parties are in sync and most cases are successful. However, we can only take on so many opportunities.
We take on opportunities only when we encounter partners who are sincere, positive, forward thinking, have a unique business model and with whom we see a future working together with.
If you feel that you are on the same wave length with as us, please feel free contact us.
※Unfortunately, we are unable to meet everyones in-person consultation request.
Please tell us what merits you can expect for both parties, by partnering your business model with XLab. After a review, we will contact you.
We are not accepting new application for the Alliance Business at this moment. We will notify you through our email newsletters when we reopen. Thank you for your understanding.