Avoid Collection Problems
Collection 1 of 3
Avoid putting yourself in the position of trying to get reluctant clients to cough up the dinero they owe you. The problem is, you may raise some money in the collection process but the time you spend on collections is unpaid. Meaning it requires you to throw good writing time after bad. So you need to use quick methods. Create a set of collection emails that you will can speedily personalize to the the specific debtor. Keep at it until they pay up or pass on.
The most effective way to collect money is to start early. Do so by considering the collecting problem before you take on the assignment. Do it before your enthusiasm and need of the work overwhelms any concern you might have about getting paid. Not one in twenty of my clients have failed to pay approximately on time or in advance. The key to such results is to turn in good work on time. The downside to having a low rate of defaulters is that it made me complacent, thus setting me up to find myself in an unleveraged position with two clients when the recession tightened.
Get your CAGs signed by your client’s company rather than by the individual. Why? Because collection fees are far less for a company than for individuals. The collection industry knows individuals are more elusive. Fees are how much less? Could be as much as 40 percent less: 10 percent for the company debt vs. 50 percent for individual debt.
You may want to collect all of it by yourself. If so, load all your collection messages with courtesy and understanding. This is vital. Start off that way and continue on the high road. Sarcasm, attempts to shame them, or lashing out at them in anger will have the opposite effect of what you intended. Such tactics make them want to get back at you by not paying. Your purpose should be to make them want to pay. Here’s a key point you should never let slip far out of your sight: you have little or no leverage. You’re not a utility; you can’t shut off their water. In many collection cases, you have already submitted thr entire msnuscript so they don’t feel any strong need to pay you. This most recently happened to me with a client we’ll call “Walter” because it’s not his name. Walter stopped paying after he received the final chapters of my second book-writing assignment for him. This took me by surprise because Walter had always been a prompt payer.
The time to beef up your leverage is before you need it, not after. This generally means you should avoid delivering the last installment of the work until you receive everything they owe you. If you shoot yourself in the foot by handing in the ending and hoping for payment, don’t be surprised if it doesn’t arrive soon—or ever.
Okay, what works best on collecting money from reluctant or possibly hard-pressed clients?
In the beginning of your collection campaign, follow-up twice a month via email; always brief, always written in friendly understanding language, always polite but firm. A few brief comments about the weather can soften the message’s underlying harshness.
Gather your messages, organize them into a series of steps. Revise and perfect them every time you use them. Press your collection effort regardless of whether or not you have the leverage to force payment.