White-label is a term used to refer to a product that is re-branded multiple times and licensed out. The old-industry motto was “I want to own everything”. Nowadays, people have learned to share and for the better. When it comes down to coding a social network you hit quite a few obstacles:

1)    Finding developers that are experienced and have worked on large-scale sites before.
2)    Writing the 1M lines of code before your competitor beats you to market.
3)    Coming up with a budget to meet the six-figure price tag associated with development.

Hiring a mechanic to rebuild your engine, paint your car, and post it to Ebay motors is only bound to have implications. The web design and marketing business is tight nit. We don't compete as much as you think. My firm provides fully disclosed outsourcing services to many of the other firms in my area, and vice versa. That's how we are all able to offer such a large pallet. Regardless, if I don't excel at something I won't submit it as part of my service offering. You need to determine what these firms are capable of before hiring them.