White Label Payroll Software:  Options To Consider

White label payroll software offers the framework for starting a payroll business.  Adding a payroll marketing strategy to a white label partner program creates a turnkey business solution often referred to as BPO.

 What is a BPO model?

BPO is the acronym for Business Processing Outsourcing, a business partnership collaboration designed to leverage specialization of core business competencies, maximize profit optimization and increase scalability.  

In the human capital management (HCM) marketplace, BPO models are also known as Human Resource Outsourcing (HRO), Professional Employer Organization (PEO) and Administrative Services Organization (ASO).  In the accounting community, the BPO model is a component of the managed services group.

A common BPO partnership divides responsibilities amongst two business functions:  back office operations and payroll marketing.  Our focus will be on this type of BPO.

Top Five Key Considerations Of A White Label Software Model

The top five key considerations in the back office and payroll marketing BPO are: 

1. Branding
2. Payroll Sales & Payroll Marketing
3. Payroll Pricing
4. Payroll Implementation
5. Payroll Servicing – Client Support

Branding:  Your Brand vs Their Brand

In a white label partnership, the sales organization promotes its own logo and builds brand equity.  Alternatively, a sales organization may choose to promote the back office partner’s logo.

Payroll Sales & Payroll Marketing

Who will be responsible to complete payroll sale?

Referral Partner – In a referral partner relationship, the payroll affiliate refers the lead to the back office organization which engages the prospect and completes the sales process.

Full Service Sales – In this option, the sales process is fulfilled by the payroll sales and the payroll marketing group.

Payroll Pricing – What is the percentage of revenue for payroll?

 Wholesale – Sales/Marketing group is offered a ‘buy rate’.  Any revenue above the buy rate is shared with the sales/marketing group

 Referral – Payroll Revenue share based on a percentage of the total revenue.

 Hybrid – A wholesale model may also incorporate elements of a referral revenue share

Payroll Implementation 

Implementation – Who collects the data and sets up the company?

Data Collection – After the sale, to set up the client and manage a successful implementation, documentation and data collection are required to perform a successful implementation. 

Company Set Up – These tasks can be shared depending on the BPO arrangement

                     Company Shell

                    Employee Demographics

Payroll Servicing/Client Support – How is client supported?  

BPO models rely on the sales/marketing group to leverage the trust created during the sales process to help support the client.  The sales group can provide 1st tier or second tier client support.

1st Tier Support – Sales group acts as the single source of contact for the client and liases all client questions and requirements to the appropriate back office organizational support.

2nd Tier Support – Back office organization acts as the primary client contact and collaborates with sales and marketing group when client is less responsive.