Maxwell: Gusto commoditized SMB payroll through low pricing and CPA channels
Jason Maxwell · Gusto Killed Their $3m Business, Pivoted to $7.8m ATS Business in HR Tech Space · Aug 22, 2021 · at 4:59
Jason Maxwell, founder of MP, discusses why standalone SMB payroll services became unsustainable for his business prior to pivoting.
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“The pricing power of the large players in the space was really commoditizing the industry. And then you had, you know, the introduction of companies like Gusto which came in with, you know, really low pricing working a lot through the CPA channel. So especially, especially in the SMB space, payroll was Increasingly commoditized.”
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