Collecting From Your Customers

Quick! Grab your pen! Hey lady - please check off all of the following that apply to you. You're going to LOVE this...
In the past year you've:
• Prospected for clients at tradeshows
• Advertised for clients
• Networked at local events for clients - heck you've even traveled to do it!
• Invested in products or services
• Created marketing materials that attract customers in
• Sent direct mail, thank you cards
• Blogged
• Sent out an e-zine
• Had client meetings in person, or on the phone
• Spent hours on email
• Hired staff to work with customers
• Blah, Blah
OK - now that you've probably checked off the BULK of the LIST - let me ask you a question.
Are You Letting Customers Off The Hook And They Owe You Money??
An old sales manager of mine taught me something years ago. It's pretty simple.
He said:
"It's not a sale until you're paid."
And believe me - he made sure I UNDERSTOOD COMPLETELY that I was a 22 year old sales rep on 100% commission. If I didn't sell (and collect the money) - I didn't eat.
Pretty simple formula.
And for the most part - over 20 years of selling - I have worked as a straight commission sales person. So NO ONE can talk to me about "Ooooh Kim - collecting is tough."
Trust me - I've lived it and I still am. As a business owner - if I don't collect the money - it hits me in the wallet. Just like YOU. And I don't want you to have a FAILING GRADE when it comes to collecting the cash.
And with confidence I can tell you I've rarely been burned by a client for the cash. (For the few that did - they are now in the Black Hole - forever blacklisted by yours truly)
So here's the deal. Why are you working SO HARD to make money and then allowing customers to NOT PAY?
I'm not talking about all of your customers. Most of your customers pay in a timely manner and they are fabulous, send you thousands of dollars in referrals - all good.
But then there are the OTHERS -you're constantly chasing them for payment and you have "burned" by them. Or you have outstanding invoices with them that are so cold and old you've almost given up hope?
Doesn't THAT feel nice?
Here's The Great News!
Most people want to pay their bills. They really do. So in order to get paid when you want and want you want - then follow these next 5 Rules.
The 5 Rules Of Collecting The Money, Honey:
1. Establish The Terms For Payment Upfront. Look - if a client doesn't want to pay within 30 days - you need to know that. And so do they. Why? They may need 60 day terms - or not. So don't guess. Find out right away and also be clear on what you can and can't do.
2. Get Deposits. This doesn't apply to every person or every product. As a speaker I ask for a 50% deposit up front for speaking engagements. Why? I'm selling a date and creativity - 2 things I can't turn around and quickly sell to another client on short notice
3. Stay In Touch. Poor communication will kill your collecting efforts. Have you goofed up somehow? Why isn't your client paying? Have they been hit by an unexpected expense? Work with your clients and you'll have a relationship much stronger than being just a vendor/supplier.
4. Don't Be Afraid. I know - you think you're playing good cop/bad cop. But you're not. You provided a product or service and as long as everything met your client's expectations - you deserve to be paid. But don't avoid BEING THE COLLECTOR - it is a necessary part of selling and it certainly doesn't have to be disrespectful or nasty.
5. Don't Give Up. Exceptional sales people don't give up. Don't be so quick to "write-off" money that someone owes you. I have a problem with that. You worked for it - then stick to it. Be willing to take it all the way - especially if it is for a large amount of money.

Don't Reward Bad Behavior
I bet you have many wonderful clients who pay your rate without a quibble. And then there are others who grind your rate and then take forever to pay. So why do the losers get all the breaks from you??
Remember - reward those who are loyal to you, who refer to you, who choose your services on a consistent basis and who you LOVE working with.
DO NOT - I repeat DO NOT - keep accepting business from "customers" who don't pay.
Because remember - without MONEY - you don't have a business - just an expensive hobby.
So there.
Love From Your Bossy Sales Diva,
Kim
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