TEL Staffing & HR Blog

Mastering the Path to PEO Brokerhood in 7 Steps

Written by TEL | June 2024

Becoming a PEO broker could be the perfect opportunity for sole proprietors or independent business owners looking to supercharge their service offerings.

It’s a relatively simple way for professionals across various fields, such as accountants and insurance brokers, to tap into a new revenue stream while offering enhanced value to their clients.

In this blog post, we’ll explore why you should consider becoming a PEO broker and outline the steps to get you there.

Why Become a PEO Broker?

Becoming a PEO broker offers a unique revenue opportunity for professionals already established in related fields. By referring clients to a Professional Employer Organization (PEO), you can earn commissions while providing invaluable services that enhance your client’s business operations.

When you partner with a PEO, you gain access to a suite of HR services that can significantly benefit your clients. From payroll management to employee benefits, PEOs provide comprehensive solutions to help your clients focus on what they do best—running their business.

A PEO broker often becomes a trusted advisor to their clients who helps connect them to their HR partner. You can build long-term relationships by providing exceptional service and reliable solutions that result in recurring revenue and ongoing client satisfaction.

Steps to Becoming a PEO Broker

Becoming a PEO broker requires some upfront setup but can seamlessly integrate into your standard offerings.

Here are seven steps to follow to become a PEO broker.

Step 1: Research PEOs and Industry Standards

The first step to becoming a broker is understanding what a PEO is and what services it offers. PEOs provide a range of HR functions, including payroll processing, employee benefits administration, and compliance management. Familiarize yourself with key players in the market and the standards that govern the industry. Understanding these basics will allow you to explain complex HR concepts to potential clients and partners, helping you notice potential issues and walk them through how to solve them.

Step 2: Leverage Existing Networks

Your current network is an invaluable resource when starting as a PEO broker. Whether you are a CPA, insurance agent, or another type of professional, you likely have connections who could benefit from PEO services. Attend networking events, join professional associations, and utilize online platforms like LinkedIn to identify potential clients and partners who could benefit from PEO services.

Step 3: Partner with Established PEOs

Reach out to established PEOs like TEL to explore partnership opportunities. Many PEOs offer broker programs that include training and resources to help you get started. By partnering with an established PEO, you can access their expertise and credibility, which can be crucial when you are just beginning.

Step 4: Acquire Licensing (if required)

Depending on your state regulations, you might need to obtain specific licenses to operate as a PEO broker. Check your local requirements and ensure you comply with all necessary regulations. Consulting with an HR entity can help guide you through this process and ensure you have all the credentials required to operate legally and effectively.

Step 5: Develop a Pitching Strategy

Creating a comprehensive pitching strategy is essential to effectively communicate your PEO broker services. Highlight your expertise and how it complements HR services to demonstrate the added value it provides potential clients. Your pitch should clearly outline the benefits of PEO services and how they can solve specific pain points for your clients.

Step 6: Engage in Continuous Learning and Development

The PEO industry continually evolves, so staying updated with the latest trends, legislative changes, and best practices is crucial. Engage in continuous education by attending industry seminars, webinars, and workshops. This ongoing learning will keep you ahead of the curve and enable you to provide the best possible advice to your clients.

Step 7: Provide Exceptional Client Service

Exceptional client service is the foundation of a successful PEO brokerage. Building and maintaining strong relationships with your clients requires offering personalized solutions and going the extra mile to meet their needs. Exceptional service helps establish your reputation and encourages client referrals, further growing your business.

Master Your Path to Brokerhood with TEL

TEL is an experienced PEO that supports brokers in their journey to success. They offer comprehensive training, resources, and partnership opportunities tailored to help you become a successful PEO broker. By partnering with TEL, you gain access to a wealth of knowledge and a reliable partner committed to your success.

Becoming a PEO broker is a lucrative and rewarding opportunity for professionals looking to expand their service offerings and enhance the value they provide to their clients.

Take the first step today by exploring partnership opportunities with TEL and start your journey toward becoming a successful PEO broker.