This is a method that will guide you to getting the most bang for your buck with your debt collections. And by “bang for your buck”, I mean HASSLE-FREE! Yes, the elusive, magical effortless mode of collecting money you are owed every time.
Why is hassle-free collections a big deal? Well, simply put, it is the holy grail of business. When it comes to being a successful business, one of this biggest impediments to success is the inability to collect payments from customers who engage in purchasing your products or services. We all wish we could get every penny owed to use when we sell, but the reality is that isn’t always possible. As it is, we are stuck with other expensive methods of collecting debts; court fees, lawyer fees (if we hire an attorney), collection agencies, etc. Well, the advent of the internet is is never more attractive as it is in this day and age. Why? Because the fact that you are reading this here and now means you have found the of the solution by simply searching for it.
We know that bad debts write off is needed for any business. It happens to every business. Some percentage of sales will never be collected. At least that is what you are taught to expect in accounting. But we also know that the more you try to collect, the more likely you are to receive what is owed to you… provide you do it the right way.
If your collections of sales do not match your profit calculation, you lose hard-earned money!
Why is an alternative to standard collection practices needed? Simple. Who wants to have to spend thousands of dollars on an attorney to write letters to the customer? As you probably know lawyers are expensive, and can cost you $300 dollars per hour for their time. The same can be said of collections agencies. While the standard ‘fee’ is about 15% of the amount owed to you, this can be as high as 30% – depending on the agency. Who wants to pay that much out of a sum that they are fairly owed by their customer? No-one.
Now this isn’t to say collections agencies don’t work. They work and work well, but it takes careful analysis of the agencies (and your particular situation) to find the BEST and least expensive option for you and your business. Not to mention having to deal with the dreaded “Post and pray” – whereby you are stuck waiting to see if the method/lawyer/agency you chose will pay off and will get you the money back in the end.
Enter The “L.I.E.” Method: Instructions On Implementing The “Collections Method”.
Legal process, relentless intensity and a tactical breakdown of what is owed to you all rolled into one and sent to your debtor(s). By aggressively using a unique three-pronged approach of using the best and most up-to-date methods of collections, you also lay the foundation for future success with customers by making them UNABLE to ignore you! When success dawns on a business, it soon becomes obvious that not every customer will fit the mold of the perfect client. You may have to be flexible with the way you deal with each one. Ultimately though, you need a process in place to help you successfully retrieve all finds owed to you. How? By using a tried and true method to help increase the likelihood of getting customers to pay you when they say they will.
And what is that solution? I’ll tell you: Do what high powered lawyers and collections agencies do to ensure success with collections. How? By utilizing legal means (letters and more) as well as the right language that will TRIGGER a response that you want. Additionally trick them into thinking you are giving them an magical break. What is that term? One word: “Discount“. The goal is to pile as much pressure on your non-paying customer as possible, including expenses, and then to offer them a “break” which they will be extremely glad to take advantage of.