Before You Sell Your Payroll Service
To Your Kids, Read This Article
By Glenn Fallavollita, President - SellMorePayroll.com & Drip Marketing, Inc.

• Word Count: 714
• Read Time: 2.9 Minutes

So, you’ve built a successful payroll service, and you are now considering the idea of selling your business to one of your children(s). And as with many decisions in life, you need to think through the process to ensure a smooth transition to this transaction.

Staggering Facts To Consider:

According to Businessweek.com, 2010…

• ~40% of U.S. family-owned businesses transition to a second-generation business.
• ~13% are passed down successfully to a third generation.
• ~3% survive to a fourth generation or beyond.

In an article by Beau Ruff, Cornerstone Wealth Strategies, he wrote the following:

“Gift Rules Apply

A business can be gifted, but how does one determine if any part of the business transition is a gift?

• Any time a person sells an asset (including the family business) below fair market value to a child, the seller must analyze the application of gifting rules (and the associated gift tax).
• Gifting applies to the total sale price but could also apply to other parts of the transaction, such as the interest rate charged on an installment sale note (where the parents effectively loan a portion of the purchase price to the child buyer).

To read this article in full, CLICK HERE.

Reasonable sale price?

• The responsible solution is to get the business appraised by a qualified business valuation expert. This allows a competent third party to evaluate business metrics for an unbiased view of value. Once a clear value is established, it can then be used to later drive other components of the business transition strategy.
• Whether the interest rate charged by the seller parent to the buyer child is a gift is more straightforward. The IRS monthly publishes the Applicable Federal Rate (AFR) which is used to determine if the interest rate charged gets into gift territory. The long-term (over nine years) AFR for May 2022 is 2.66% (compounded annually).

Accordingly, this sets the floor for the minimum long-term interest to be charged on the sale of the business to avoid the implication of the gifting rules.

Favorable timeline

Parents often structure these sales with the minimum amount of down payment, carry the loan for a period longer than a typical third-party sale, and charge lower interest on the contract balance.

• For example, a parent trying to avoid the implication of gifting (but still create favorable terms for the child) might require no down payment, a 10-year installment plan, and 2.66% interest on the declining balance (based on the May 2022 AFR).

Partial gift

A common misunderstanding regards the limits of gifting.

• The federal gift annual exclusion allows parents to make gifts of up to $16,000 without any reporting requirements, but parents can gift much more than that.
• For example, under current law, a couple can gift a total of $22.12 million during their lifetimes before being required to pay any gift tax, but that couple would be required to file a federal gift tax return.
• And, if a couple made a gift that large, it would entirely eliminate their estate tax credit thus pushing all assets remaining to the 40% tax level at death. Accordingly, a gift that large should be heavily scrutinized.
• More likely, the parents might choose to gift, say $1 million, out of a total business value of $5 million. Then, the child has instant equity in the business and the parents can help to finance the remaining $4 million purchase price. This too would require filing a gift tax return, but no gift tax would be owed.

To read this article in full, CLICK HERE.

About The Author:

Glenn Fallavollita is a nationally recognized keynote speaker providing money-making advice to help payroll service owners, sales pros, and marketing gurus build more profitable relationships with their database of prospects, referral partners, and clients.

Additionally, Glenn is the president of SellMorePayroll.com and Drip Marketing, Inc. and has written 50+ whitepapers and three sales/self-marketing books; Supercharge Your Payroll Sales NOW!, Stop Whining AND Start Selling, and Drip Marketing: A Powerful New Marketing Strategy That Gets Prospects To Buy From You. He also writes blogs for LinkedIn and other national websites.

© Drip Marketing, Inc.  All Rights Reserved May Not Be Used Without Written Permission.

4 Steps To Using An Elevator Pitch
For Your Payroll Service
By Glenn Fallavollita, President - SellMorePayroll.com

• Word Count: 312
• Read Time: 75 Seconds

A polished elevator pitch is an essential tool for any payroll service/HCM salesperson as it will allow them to quickly and effectively communicate a payroll service's value proposition; plus, it will also set them apart from the competition. By mastering this brief (10 – 30 seconds) and powerful statement, you will be able to articulate the things that set you apart from the competition.

Sample Elevator Pitch:

"Since 20XX, we have been helping business owners like you solve their X, Y, and Z problems. More specifically, we help our payroll and HCM clients…

• One, stay compliant with their __________ requirements.
• Two, reduce their ________ liabilities through a variety of ___ and ____ solutions.
• Three, take advantage of certain ___________.

By the way, here are a few client testimonials from companies similar  in size to yours."

4 Steps To Using Your Elevator Pitch.

Step 1:  Assess The Person/Group: Before you go into your elevator pitch, ask yourself...

• What is their title?
• Are they a referral from someone, a cold prospect, or someone who called in and asked for a proposal?
• What do they value most in their payroll service, and what don’t they like in their current payroll service?
• What products/services are they looking to purchase?

Step 2: Be Concise - Make sure your elevator pitch is brief and concise. It should last about 10 – 30 seconds, although I have done 90-second elevator pitches for group presentations. Remember, read your audience.

Step 3: Look For Opportunities During Your Discovery Questions - I always like to ask some discovery questions BEFORE I use my elevator pitch. Why? I get to leverage the information learned from my discovery phase.

Step 4: Be Confident - One of the most important elements in your elevator pitch is confidence. Believing in yourself, your business, and what you offer will get a prospect/referral partner excited about your offering.

About The Author:

Glenn Fallavollita is a nationally recognized keynote speaker providing money-making advice to help payroll service owners, sales pros, and marketing gurus build more profitable relationships with their database of prospects, referral partners, and clients.

Additionally, Glenn is the president of SellMorePayroll.com and Drip Marketing, Inc. and has written 50+ whitepapers and three sales/self-marketing books, Supercharge Your Payroll Sales NOW!, Stop Whining AND Start Selling, and Drip Marketing: A Powerful New Marketing Strategy That Gets Prospects To Buy From You. He also writes blogs for LinkedIn and other national websites.

© Drip Marketing, Inc.  All Rights Reserved May Not Be Used Without Written Permission.

7 Newsletter Ideas To Attract More
Payroll Sales Leads And Referrals
By Glenn Fallavollita, President - SellMorePayroll.com

• Word Count: 303
• Read Time: 73 Seconds

e-Mail marketing is a low-cost way to promote your payroll/HCM business in the marketplace. And to help you produce content your subscribers would want to read, here are a few ideas to help you attract more sales leads and referrals.

1. Topic Series: You can commit the month of May to how to hire a new employee or the new marijuana laws. This approach gets subscribers looking forward to your upcoming e-mails and makes it easier for you to plan your content. 

2. Q&A: With this section, you can address a single question and answer it via your newsletter, i.e., how to conduct an employee background check, how to streamline HR employee questions, etc. 

3. Interviews: Do you know an HR expert who has a perspective to share? If you do, highlight this individual in your newsletter.

4. Videos: It’s no secret that people like watching videos. If you add a video interview or tip to a newsletter, add the word “Video” in your e-mail subject line.

5. Meet The Team: Create a section that promotes “Meet the team” to give subscribers a more human touch to your payroll/HCM business.

6. Storytime: People like to read “problem/solution” stories. This format allows you to quickly tell a “client success” story. 

7. In The News: This section adds great e-mail content to your newsletter. Just make the content relevant to the reader.

Summary: e-Mail newsletters are an easy way to connect with your audience; therefore, keep the following in mind:

• Keep your copy snappy, relevant, and brief.
• You don’t need to overwhelm the reader with excessively long copy.
• Focus on engaging subject lines.
• Send more than a newsletter to help position your payroll service as a trusted resource in the marketplace.

About The Author:

Glenn Fallavollita is a nationally recognized keynote speaker providing money-making advice to help payroll service owners, sales pros, and marketing gurus build more profitable relationships with their database of prospects, referral partners, and clients.

Additionally, Glenn is the president of SellMorePayroll.com and Drip Marketing, Inc. and has written 50+ whitepapers and three sales/self-marketing books, Supercharge Your Payroll Sales NOW!, Stop Whining AND Start Selling, and Drip Marketing: A Powerful New Marketing Strategy That Gets Prospects To Buy From You. He also writes blogs for LinkedIn and other national websites.

© Drip Marketing, Inc.  All Rights Reserved May Not Be Used Without Written Permission.

22 Ways To Grow Your
Payroll Service's e-Mail Marketing Database
By Glenn Fallavollita, President - SellMorePayroll.com & Drip Marketing, Inc.

• Word Count: 508
• Read Time: 2.0 Minutes

To help you improve the size and quality of your payroll service's e-mail marketing database, here are a few tips to consider:

1. Add a “Sign-Up For A FREE (Seminar, Newsletter, Whitepaper, etc.)” to your website’s home page.
2. Add a “share this e-mail” social media button to every e-mail campaign.
3. Add a low-risk offer coupon to an e-mail marketing/direct mail campaign website (where they need to provide an e-mail address to get the offer).
4. Ask your prospects and referral partners for their e-mail addresses (yes, it’s that easy).
5. Ask your LinkedIn, Twitter, and Facebook fans to subscribe.
6. Co-host a webinar with another business (where you can promote your contact information).
7. Contribute articles and newsletters to other sites (where you can promote your contact information).
8. Create a free resource center on your website (that requires an e-mail address to log in).
9. Create a special Facebook ad with a low-risk offer.
10. Develop niche newsletters (where you can promote your contact information).
11. Export your Outlook file of e-mail addresses.
12. Add local, regional and national editors to your e-mail marketing campaigns, i.e., newsletters (where they can share/promote your contact information).
13. Get more interviews (with anyone).
14. Offer a free gift to anyone who signs up for a seminar, whitepaper, newsletter, etc.
15. Host an online webinar (where you can promote your contact information).
16. Advertise an online contest for a free product/service (e-mail address is required to sign up).
17. Partner with another business (where you can promote your contact information to their database of customers/prospects).
18. Have people sign up for your newsletter at a trade show or event.
19. Post videos to your YouTube channel and tell people to sign-up for your newsletter service.
20. Take a picture of every business card and then upload it to your e-mail hosting service.
21. Use Google ad words to promote a product or service on your website (where they need to provide an e-mail address to get the offer).
22. Go onto a prospect’s website and copy someone’s e-mail address (do NOT use info@, sales@, service@, etc., into your e-mail marketing databases – see below).

A Word Of Caution.

e-Mail hosting services, i.e., Constant Contact, will cancel your account if you add too many “role” addresses to your NON-client database. Here is a sample role e-mail addresses begin with:

• Donot@
• Help@
• Info@
• Mail@
• Manager@
• Office@
• President@
• Sales@
• Service@
• Spam@
• Support@
• Webmaster@

Two Points:

1. Once you get someone’s e-mail address, you can maintain your one-on-one communication with them indefinitely.
2. Make it a priority to grow your e-mail marketing database.

About The Author:

Glenn Fallavollita is a nationally recognized keynote speaker providing money-making advice to help payroll service owners, sales pros, and marketing gurus build more profitable relationships with their database of prospects, referral partners, and clients.

Additionally, Glenn is the president of SellMorePayroll.com and Drip Marketing, Inc. and has written 50+ whitepapers and three sales/self-marketing books, Supercharge Your Payroll Sales NOW!, Stop Whining AND Start Selling, and Drip Marketing: A Powerful New Marketing Strategy That Gets Prospects To Buy From You. He also writes blogs for LinkedIn and other national websites.

© Drip Marketing, Inc.  All Rights Reserved May Not Be Used Without Written Permission.

Payroll Sales Leaders: Why You
Need A Payroll Proposal Tracking Report In Excel
By Glenn Fallavollita, President - SellMorePayroll.com & Drip Marketing, Inc.

• Word Count: 139
• Read Time: 33 Seconds

If you are the sales leader for your payroll service, you need to track the status of every proposal on a daily/weekly basis. And if you are boohooing the idea of tracking your proposals in Excel, I challenge you to call me and tell me why!

Column Titles To Use:

• Lead Type (i.e., self-generated lead, in-house lead, referral partner referral, or client referral). 
• Company Name
• Contact Name/Title
• Executive Follow-Up Call (this is a call made by the owner/sales leader thanking the prospect for the opportunity to earn their business).
• Date Of Proposal
• Sunset Date Of Proposal (if a lead hits this date, it automatically gets moved to the loss column). 
• Current Payroll Service
• Discount Given
• Product(s) Presented
• High Probability Close
• Low Probability Close
• High Probability Win
• Low Probability Win
• High Probability Lost
• Low Probability Lost

Other Items To Track:

• Overall Proposal Close Rate
• In-House Sales Lead Proposal Close Rate
• Self-Generated Lead Proposal Close Rate
• Referral Partner Lead Proposal Close Rate

Remember, you can't manage what you don't measure! Therefore, if you are not measuring the success of your sales team's proposal success rate, you are not managing them correctly. 

About The Author:

Glenn Fallavollita is a nationally recognized keynote speaker providing money-making advice to help payroll service owners, sales pros, and marketing gurus build more profitable relationships with their database of prospects, referral partners, and clients.

Additionally, Glenn is the president of SellMorePayroll.com and Drip Marketing, Inc. and has written 50+ whitepapers and three sales/self-marketing books, Supercharge Your Payroll Sales NOW!, Stop Whining AND Start Selling, and Drip Marketing: A Powerful New Marketing Strategy That Gets Prospects To Buy From You. He also writes blogs for LinkedIn and other national websites.

© Drip Marketing, Inc.  All Rights Reserved May Not Be Used Without Written Permission.

20 Questions To Ask During Your Next Payroll Sales Job Interview

By Glenn Fallavollita, President - SellMorePayroll.com & Drip Marketing, Inc.

• Word Count: 494
• Read Time: 2.0 Minutes

After being hired for a new sales position, it becomes abundantly clear to many salespeople they made a huge mistake in taking the job. The good news is this: A salesperson can avoid this type of situation by asking some key questions during the job interview process.

20 Questions* To Ask During Your Next Sales Job Interview (In No Particular Order):

1. What makes your business unique in the marketplace?
2. Who are your toughest competitors?
3. Do you have a sales training manual and what type of formal sales and product training do you offer?
4. What are a prospect’s top three buying triggers when buying what you sell?
5. May I see your sales literature and client testimonials?
6. How are sales quotas assigned and how often do they change?
7. How often does a first-year salesperson hit their quota? What percentage of your salespeople are at or above their sales quota?
8. When are the best and worst selling months for what you sell?
9. Would you mind if I went on a few sales calls with you as well as with some of your salespeople?
10. What can you teach me?
11. How many salespeople have been hired, fired, or quit in the last twelve months?
12. Do you have a written sales and marketing strategy (if yes, ask if you can see it)? What's your annual marketing budget to support my sales efforts?
13. What type of lead-nurturing, social media, SEO, or drip marketing campaigns do you have in place to support my prospecting efforts?
14. How are sales leads generated?
15. How many sales leads came in the past four weeks?
16. How are sales leads distributed?
17. What has been your track record been in growing and/or promoting salespeople?
18. What is your sales team’s overall proposal close ratio?
19. I read your LinkedIn profile and it seems that you've been here for X years/months; why did you take the job as _________?  Review/print their LinkedIn profile before you ask this question and tread lightly as some sales leaders will get defensive when you ask questions about their background.
20. How is your salesperson’s compensation plan structured? Do you pay a commission on new versus repeat sales/orders? How are my sales tracked?

*Some questions can be avoided by your preliminary research and/or industry nuances. 

IMPORTANT: Before going into your next interview, type and print out your questions (which makes you look even more professional).

After you have completed the interview process with each company, I recommend finding a quiet place to reflect on the following questions:

• Do I need this job more than this job needs me?
• Can I get excited about selling this company’s product or service line?
• What type of reviews can I find online about this company (are they positive)?
• What type of turnover has this company had with its salespeople?
• Is their comp plan comparable for the industry?
• What type of FORMAL sales AND product training does this company offer?
• What are the salespeople making for salary and commissions?
• What type of lead nurturing drip campaigns does this company have in place?
• How often does the sales comp plan change?
• Who are their biggest competitors and are they hiring as well?
• What are the salespeople saying about their company and sales leader?
• What are their customers saying online about them?

About The Author:

Glenn Fallavollita is a nationally recognized keynote speaker providing money-making advice to help payroll service owners, sales pros, and marketing gurus build more profitable relationships with their database of prospects, referral partners, and clients.

Additionally, Glenn is the president of SellMorePayroll.com and Drip Marketing, Inc. and has written 50+ whitepapers and three sales/self-marketing books, Supercharge Your Payroll Sales NOW!, Stop Whining AND Start Selling, and Drip Marketing: A Powerful New Marketing Strategy That Gets Prospects To Buy From You. He also writes blogs for LinkedIn and other national websites.

© Drip Marketing, Inc.  All Rights Reserved May Not Be Used Without Written Permission.

11 Tips To Improve Your
Payroll Service's e-Mail Marketing Results
(Print And Share With Your Sales Leader)
By Glenn Fallavollita, President - SellMorePayroll.com & Drip Marketing, Inc.

• Word Count: 146
• Read Time: 36 Seconds

If you want to generate more sales leads and referrals from your e-mail marketing efforts, I have listed below a few tips to consider.

• #1: Avoid Writing Content That Is Too Self-Serving
• #2: Avoid Writing A Wall Of Text
• #3: Segment Your e-Mail Marketing Lists, i.e., Clients, Prospects, And Referral Partners.
• #4: Keep Your e-Mail List Updated And Clean  
• #5: Write Engaging Subject Lines
• #6: Use The Correct Name In The "From" Field
• #7: Measure The Size Of Your Database
• #8: Start Following-Up
• #9: Make Data-Driven Decisions
• #10: Proofread Your e-Mail Campaigns
• #11: Consider Hiring A Professional Copywriter

Additional Ideas:

I recommend spending a few minutes analyzing:

1. The size of your e-mail marketing database(s).
2. The type of e-mail marketing campaigns you/your business has sent in the past 90 days.
3. If you properly segmented your e-mail marketing databases on file.

About The Author:

Glenn Fallavollita is a nationally recognized keynote speaker providing money-making advice to help payroll service owners, sales pros, and marketing gurus build more profitable relationships with their database of prospects, referral partners, and clients.

Additionally, Glenn is the president of SellMorePayroll.com and Drip Marketing, Inc. and has written 50+ whitepapers and three sales/self-marketing books, Supercharge Your Payroll Sales NOW!, Stop Whining AND Start Selling, and Drip Marketing: A Powerful New Marketing Strategy That Gets Prospects To Buy From You. He also writes blogs for LinkedIn and other national websites.

© Drip Marketing, Inc.  All Rights Reserved May Not Be Used Without Written Permission.

20 Reasons Why Most Payroll Salespeople Miss Their Quota 

(Print And Share With Your Sales Leader)
By Glenn Fallavollita, President - SellMorePayroll.com & Drip Marketing, Inc.

• Word Count: 291
• Read Time: 1.2 Minutes 

Based on my 30+ years of sales and consulting experience, I have determined there are many reasons why a salesperson will consistently miss their sales quota.

1. Poor discovery asking question skills.
2. Dislikes or doesn’t respect their sales leader (yes, this is a very real issue).
3. Has poor communication (oral and written) AND poor computer skills.
4. Doesn’t know how to differentiate themselves/their business in the marketplace.
5. Doesn’t know or understand the value of what they are selling.
6. Doesn’t know the competition.
7. Lacks a passion and/or interest in what they are selling.
8. Lacks networking skills.
9. Lacks urgency in the sales process.
10. Not willing to change or accept suggestions to modify their current method for selling.
11. Poor work habits and/or lacks self-discipline.
12. Projects a poor or disingenuous image.
13. Sends their proposals via e-mail versus in person. Additionally, they send a proposal based on a “quote and hope approach.”
14. Stops calling a prospect after hearing, "No, we are not interested."
15. They are burnt out from selling.
16. They are disengaged from their company (due to the reasons found on this list).
17. They are satisfied with the guaranteed money they are making from their base salary, benefits received, phone/car reimbursement monies, and/or residual commissions.
18. They don’t have a large enough database of prospects/referral partners to target.
19. They received little to no product and sales training from their sales leader.
20. They took a sales job to “give it a try” or until a better job offer comes along.

If you can relate to what I listed above, help yourself by addressing these issues head-on. If you do, it can and will make a big difference in your sales performance.

About The Author:

Glenn Fallavollita is a nationally recognized keynote speaker providing money-making advice to help payroll service owners, sales pros, and marketing gurus build more profitable relationships with their database of prospects, referral partners, and clients.

Additionally, Glenn is the president of SellMorePayroll.com and Drip Marketing, Inc. and has written 50+ whitepapers and three sales/self-marketing books, Supercharge Your Payroll Sales NOW!, Stop Whining AND Start Selling, and Drip Marketing: A Powerful New Marketing Strategy That Gets Prospects To Buy From You. He also writes blogs for LinkedIn and other national websites.

© Drip Marketing, Inc.  All Rights Reserved May Not Be Used Without Written Permission.

Is This The Right Time To Sell Your Payroll Service?
By Glenn Fallavollita, President of SellMorePayroll.com & Drip Marketing, Inc.

After a challenging two years, many payroll owners are considering selling their payroll service due to:

• High Multiple On Annual Sales
• Growing Economy
• Rising Taxes
• Buyers Are Flush With Cash
• X-Factors, i.e., retirement, health, quality of life, etc.

The "Potential" To Pay Higher Taxes Is Very Real With The Biden Administration.

While the decision to sell a payroll service should never be based on taxes alone, Biden's proposed tax plan would increase one's capital gain tax bill (see below).

• The proposed 39.6% capital gains bracket would apply to taxpayers with earned income in excess of $1 million ($500,000 for married filing separately).
• A taxable event, such as the sale of a business, could temporarily push income over the $1 million mark.

Click Here To Read Biden’s Tax Plan

A Successful Sale Requires Preparation On Your Part.

Succession planning is much more complicated than taking a check from a new owner as there are many complex financial, legal, and relationship issues to consider.

If you want to read more about selling a payroll service, click this link: 4 Tips For Selling Your Payroll Service

About The Author:

Glenn Fallavollita is a nationally recognized keynote speaker providing money-making advice to help payroll service owners, sales pros, and marketing gurus build more profitable relationships with their database of prospects, referral partners, and clients.

Additionally, Glenn is the president of SellMorePayroll.com and Drip Marketing, Inc. and has written 50+ whitepapers and three sales/self-marketing books, Supercharge Your Payroll Sales NOW!, Stop Whining AND Start Selling, and Drip Marketing: A Powerful New Marketing Strategy That Gets Prospects To Buy From You. He also writes blogs for LinkedIn and other national websites.

© Drip Marketing, Inc.  All Rights Reserved May Not Be Used Without Written Permission.

9 Factors That Will Affect Your Payroll Service’s e-Mail Open Rates
(Print And Share With Your Marketing Team And Sales Leader)
By Glenn Fallavollita, President of SellMorePayroll.com & Drip Marketing, Inc.

• Word Count: 206
• Read Time: 48 Seconds

After sending more than 100 million e-mail marketing campaigns here are some of the factors that can have a dramatic impact on an e-mail campaign’s open rate.

1. Apple’s e-mail privacy policy.
2. Time of the day.
3. Day of the week.
4. Subject line used.
5. The name used in the “from” field.
6. Database receiving the campaign:
   • New prospect list?
   • Existing client/past client list?
   • An existing list?
7. The frequency of past campaigns.
8. The “age” of the database and when was the last time an e-mail campaign was sent to it.
9. Past reader’s engagement level; was the campaign sent to the people who opened (or did not open) a previous campaign(s).

IMPORTANT NOTE: If you are sending a mass e-mail marketing campaign to a B2B “non-client” database, avoid Mondays altogether as it is notoriously a bad day for mass e-mail marketing campaigns.

Best days and times To Send An e-Mail Campaign:

• Tuesdays – Thursdays from 8:15 a.m. to 9:30 a.m., 11:30 a.m. - 11:45 a.m., 12:55 p.m., or @ 2:45 p.m.
• Fridays from 8:15 a.m. to 9:30 a.m.

By the way, ~50% of the people who open an e-mail marketing campaign, will open it in the first 90-minutes.

About The Author:

Glenn Fallavollita is a nationally recognized keynote speaker providing money-making advice to help payroll service owners, sales pros, and marketing gurus build more profitable relationships with their database of prospects, referral partners, and clients.

Additionally, Glenn is the president of SellMorePayroll.com and Drip Marketing, Inc. and has written 50+ whitepapers and three sales/self-marketing books, Supercharge Your Payroll Sales NOW!, Stop Whining AND Start Selling, and Drip Marketing: A Powerful New Marketing Strategy That Gets Prospects To Buy From You. He also writes blogs for LinkedIn and other national websites.

© Drip Marketing, Inc.  All Rights Reserved May Not Be Used Without Written Permission.