Scaling a payroll business to $13 million is an impressive feat. What’s even more surprising? Doing it without a traditional sales team.
Many payroll companies rely on outbound sales, cold calls, and aggressive prospecting to grow. But some have taken a different path—leveraging acquisitions, strategic networking, and operational efficiency instead of building a high-cost sales department.
Lori Brown, CEO of PayNW, followed this unconventional approach. After growing from $500K to $8M, PayNW took another massive leap, reaching $13M through a combination of acquisitions and organic growth, without a dedicated sales force.
So, is a sales team really necessary to scale? Let’s break down the key lessons learned and explore whether payroll companies can grow successfully without relying on traditional sales.
The Challenges of Scaling a Payroll Business
Scaling any business comes with growing pains. At different revenue milestones, payroll companies face new challenges that require operational and strategic shifts:
- $500K to $1M: Establishing a consistent client base and refining service offerings.
- $1M to $5M: Finding scalable processes while maintaining service quality.
- $5M to $10M: Investing in technology, automation, and leadership.
- $10M+: Expanding through acquisitions and maximizing revenue per client.
For most companies, growth means hiring a sales team—but what if there’s another way?
Why the Sales Playbook Didn’t Work
Many payroll providers assume that hiring sales reps will fuel rapid expansion. But reality often looks different:
- Sales reps struggle to sell complex payroll and HR solutions without deep industry knowledge.
- The cost of building a sales team often outweighs the revenue generated.
- Organic growth and acquisitions can be far more effective.
Some businesses have spent hundreds of thousands of dollars hiring, training, and managing sales teams, only to dismantle them within a year after failing to see results.
A smarter alternative? Starting with a single sales leader to develop strategy and refine the sales process before scaling a team.
The Power of Industry Presence
One of the most underrated ways to grow a payroll business is being in the right rooms.
Instead of cold-calling prospects, some leaders focus on industry networking and strategic partnerships to generate opportunities. This means:
- Attending payroll and HR industry events.
- Engaging in advisory boards and peer groups.
- Building relationships with vendors and technology partners.
By consistently showing up and contributing to conversations, payroll leaders can attract clients and acquisition opportunities organically, without traditional outbound sales.
Acquisitions as a Growth Strategy
If traditional sales teams aren’t the best route, what’s the alternative? Acquisitions.
Rather than adding one client at a time, acquisitions allow payroll companies to:
- Scale faster by acquiring an existing book of business.
- Expand services to acquired clients for additional revenue growth.
- Increase market share without years of outbound prospecting.
But acquisitions aren’t an easy shortcut. They require:
- Finding businesses that align culturally and operationally.
- Ensuring smooth transitions for acquired clients.
- Balancing acquisition costs with long-term profitability.
Some payroll companies have pursued over a dozen deals before successfully closing just a few. Not every acquisition opportunity is the right fit.
Leadership & Scaling Lessons
Every payroll business reaches critical milestones where leadership and structure become even more important:
- At 25 employees: The company starts needing more defined processes.
- At 50 employees: Leadership layers become necessary.
- At 100+ employees: Culture and communication become critical for growth.
One of the biggest challenges? Letting go of underperforming employees early.
Even one or two toxic employees can:
- Create inefficiencies.
- Drain team morale.
- Drive away high performers.
Payroll business owners who scale successfully prioritize leadership development and team culture—just as much as client acquisition.
The Role of Community & Peer Groups
One of the most consistent themes among growing payroll companies? They don’t operate in isolation.
Peer groups, industry associations, and vendor partnerships can drive growth as much as a sales team. Companies that actively engage in communities like the Independent Payroll Providers Association (IPPA) often grow faster than those that don’t.
These connections provide:
- Best practices and insights from successful payroll providers.
- Exclusive vendor relationships for better pricing and technology.
- Partnerships that lead to acquisitions, referrals, and expansion opportunities.
Payroll companies that thrive leverage their networks, whether it’s for new clients, acquisitions, or leadership support.
Final Thoughts: Can You Really Build a $13M Payroll Business Without a Sales Team?
Yes, but only with the right strategies.
Some payroll businesses have scaled by leveraging acquisitions, industry networking, and operational efficiency rather than relying on traditional sales teams. While outbound sales can be effective, it’s not the only path to growth.
The key is building a sustainable, scalable business model. Are you following the traditional sales playbook, or are you creating a smarter approach to expansion?
