Relationship with ADP

[tylerb37]

Hey Gang, Indy agency in NJ, I am the only producer. I have a good relationship with an ADP Payroll office and they have offered to provide referral bonus no different than how they do with Accountants.

Is that something that can be paid to my agency or no?

Not sure if anyone else has set this up in the past

 

[Markthebroker]

If you are the owner of your agency, check with your cluster or carriers. Keep in mind, they may or may not allow it, but them actually catching you doing it is another story. Generally I've broken a minimum of 3 laws by the time I get to the office.

Furthermore, I think it would be a terrible idea to refer to ADP for a list of reasons. With all the turnover and changes that company is always going through, it's basically a guarantee that the account will be turned over to someone at some point that will try to sell them work comp, regardless of what the local office tells you today. It is absolutely not worth the referral fee.

I network with a long list of professionals, including payroll companies, and I think referring to ADP is a terrible idea. I've been burned by payroll companies before, I know exactly how this kind of stuff goes.

 

[tylerb37]

I appreciate the insight. My buddy is the manager there and yes his team is a revolving door of 1 to 2 people sticking on and doing well, and 7-8 people that are new every 12 months. I am referred a lot of business by then, was really just thinking of an additional revenue source. He already does have a number of my clients, like anything else a few have left adp and gone elsewhere with a lower price after promotions are over ect. I have not experienced yet any of his people trying to sell WC, or group benefits, he is able to put into the system referral, Payroll only do not call on other benefits ect...but you are 100% right, is that going to stop some knucklehead that is having a slow month and is trying to generate business.

In terms of referring clients, to ADP it is not something I actively do, it is a, "hey we are looking to shop our payroll, currently with Paycheck, do you trust anyone that we might be able to work with"

Thank you for the help!

 

[EugeneM]

Would have to be a hefty referral fee to affiliate yourself with them, even then.