Business Idea

Start A Background Check Software

About

Starting a background check software requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell background check software, or selling background check software online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a background check software ➜

Key stats

market size
$2.8B
revenue (monthly)
$500K
starting costs
$37.4K
gross margin
76%
avg product price
$15
time to build
12 months
growth
Word of mouth
business model
Advertising
time investment
Side project

About

Starting a background check software requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell background check software, or selling background check software online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a background check software ➜

Key stats

market size
$2.8B
revenue (monthly)
$500K
starting costs
$37.4K
gross margin
76%
avg product price
$15

 

time to build
12 months
growth
Word of mouth
business model
Advertising
time investment
Side project

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $500 $5,000
Website Costs $303 $7,215
Business Formation Fees $5,600 $20,400
App Creation Costs $1,000 $20,000
Software Expenses $162 $3,094
Advertising & Marketing Costs $0 $2,750
Other Expenses $0 $800
Total Startup Costs $8,466 $66,611

Successful Businesses

Business URL Rank
Instant Checkmate instantcheckmate.com #5,055
Truth Finder truthfinder.com #8,702
Blackbaud blackbaud.com #11,377
Namechk namechk.com #21,635
The Top10 Sites background-checks.thetop10sites.com #38,014
CheckPeople checkpeople.com #43,616
GoodHire goodhire.com #49,554
Onfido onfido.com #53,343
Smarty Streets smartystreets.com #61,912
PHP Code Checker phpcodechecker.com #103,262
Greatland greatland.com #114,165

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Meaningful business connections You never know who you will meet as a background check software. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Gain exposure and experience This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!
Unlimited income potential With starting a background check software there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
Cons Description
Longer Sales Process A background check software can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Security Issues With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
Low margins The gross margins for your background check software are typically around 76%, which can make it more challenging to incur new expenses and maintain profitability.
Taxes As a background check software, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
Stressful work This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

Marketing Ideas

  • 1

    Affiliate program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 3

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.