"With the level of fitness and skill that England have reached [in fifteens] with paid players, we need to start looking at that to stay competitive.
"But we need to figure out some pathways before we get to the fully professional stage."
Palmer said it would help if players' sacrifices and choices were recognised financially.
"Some of these players have made a commitment to rugby by going to the World Cup. They have focused on rugby for three months or so. That can mean going to part-time work and they require understanding bosses to give them leave. That process of constantly negotiating can be taxing.
"They might be amateur in status, but they're professional in the way they approach the game and it would be nice to see that acknowledged in some monetary way."
The argument against funding the Black Ferns is based around them not generating comparable revenue to the men's game through sponsors and gate takings.
Palmer said World Rugby had been proactive in that capacity at this World Cup.
"We're improving that area. Ireland has done a great job of hosting and trying to create a fan atmosphere at the one venue.
"We're still looking to commercialise and explore those ideas at a national level. [NZR sponsor] AIG have helped fund the Black Ferns and other national teams, but we need to do more of that.
"People are starting to take women's sport seriously, the team has personalities and the way Sky has covered the games with different camera angles and the commentary all adds to the overall product."
Palmer cited her 4-year-old daughter as an example of girls wanting to play the game.
"She said 'I want to play rugby like you did when you were a Daddy'. She only sees men playing on television, but now she's aware there is a women's game with these girls being given the opportunity to play."