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Background Check Providers - What's the Difference?
We came across a fantastic comparison that highlights two very different business models within the background screening industry. The two philosophies represent a fundamental divide between a tech-first approach and a data-first approach.
The "Tech Company" Philosophy (Checkr)
Checkr's mantra, "we're not a background check company, we're a tech company doing background checks," places the emphasis on software and user experience. Their primary product is not the criminal record itself, but the platform that retrieves, organizes, and presents that data.
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Business Model: They sell a technology solution (an API and a dashboard) that automates and streamlines the entire hiring process for their clients. Their value proposition is centered on speed, efficiency, and scalability. They built a platform that allows companies to run thousands of background checks quickly and manage the results programmatically.
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Target Audience: Their customers are typically other technology companies, particularly those in the gig economy, who need to onboard a large volume of workers in a seamless, automated way.
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Core Competency: Their expertise is in building a robust, scalable software platform and navigating complex compliance rules through automation. They are a service integrator, connecting disparate data sources through technology.
The "Data Retrieval Company" Philosophy (Straightline)
The philosophy, "we're not a tech company copying background checks, we're a criminal records retrieval company selling the information to these tech companies," takes the opposite approach. This model prioritizes the manual, on-the-ground work of gathering the raw data.
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Business Model: This company sells the underlying data, not the platform. Their value is in their ability to physically or digitally access courthouse records, verify information, and provide a reliable data feed. They are the engine that provides the fuel for the tech companies.
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Target Audience: Their customers are not the end-users (the companies hiring employees) but other background check firms, like Checkr, that need a source for the raw criminal record data.
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Core Competency: Their expertise lies in understanding the specific processes, legal hurdles, and data retrieval methods in each local jurisdiction. They are a data provider, and their business relies on their network of human and/or automated connections to courthouses and records departments.
The Relationship
The two models are not mutually exclusive; in fact, they are interdependent. A company like Checkr relies on companies like "Straightline" (or their own in-house teams who perform the same function) to get the data that their platforms then process. The "tech company" adds value by creating a clean, fast, and compliant experience on top of the raw data. The "data company" adds value by doing the difficult, detailed work of retrieving that information from its source.
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