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	A MEETING MASTERS MEMO
	Created by John K. Mackenzie

Client Collections Karate: 6 Degrees of Reparation

Previously we heard from a leading meeting industry attorney about negotiating a speaker contract. In this memo we outline six techniques for collecting overdue invoices. All of which this writer has used (and abused).

Here's the situation: You're a small indepen Where's Chuck Norris when you need him! dent; you did a good job for the client; you've got an unpaid invoice out there for 60 days; you need the cash until the next job pays off. There's acid building in your gut, and revenge fantasies in your head. What to do?

In writing this I make three assumptions:

1. There is no one best way to deal with past-due situations.
2. You're going to handle collections yourself.
3. You'd like to get the cash without losing the client.

There are so many variables influencing collection strategies I can't begin to deal with them all: client relationship history, amount overdue, product or service sold, and contractual agreements to mention a few.

So, let's make a fourth assumption:

4. In order to collect you have to contact your client; not just accounts payable or purchasing.

After all, how many contact choices have you got? Well, everyone to their own dunning devices; but here's what I've done and why.

Black-Belt Meeting Moves

Room Setups & Letdowns

The Executive Roast

Qualifying Event Producers

Amplifying RFPs

Killer-Client Profiles

A Sales-Jock Requiem

Business Theater

The Agenda Juggle

Renovation vs Innovation

Meeting Machines

Themes vs Names

Meeting Master Triage

Anatomy of An Offer

ADA Low Vision Specs

Venue vs Virtual Meetings

A Case for Case-Histories

Speaker Contracts

Client Invoice Collections

Power for the Planners

Speaker Fee Negotiation

"Sound" Advice

AV Projection Tips

Your Audio-Visual RFP

New Business Proposals

Public Presentations

Music Licensing

Site Selection Checklist

Degree	Media	Pros	Cons
	E-Mail: Attach a copy of your invoice, but check formatting to make sure it will print out properly.	An e-mail reminder gives the client some response and consideration time. It doesn't force an unplanned reply the way a phone call would. It also allows for some of the contingencies mentioned below.	Even using Return Receipt Requested you can't be sure the client got your message, unless you get an answer.

If accounts payable has your bill, the client may have little control over payment scheduling. So try and find out. Also, client attention could have been diverted by an illness, vacation, job change, business travel, death in the family, etc.

Degree

Media

Pros

Cons

Fax: Don't send until around 10:30 or 11:00 a.m. (client time) when the morning startup is over.

Attach a copy of your invoice.

A hard copy fax may hang around on top of the client's desk as a visible reminder when the computer is off.

Your fax may be read by others on the way to the client's desk. This could embarrass and introduce an adversarial element where none existed before.

A fax may get attention where your e-mail – lumped in with 40 or 50 others – won't. Also, e-mail invoice attachments are not always printed by the recipient.

Degree	Media	Pros	Cons
	Phone: Have a message prepared if you leave one. Fuzzy voice mails are a leading cause of client/supplier misunderstandings.	A phone call can: 1) tell you whether or not the client is aware of your overdue invoice, 2) processing status, if any, and 3) reveal payment problems and/or client objections you didn't know about.	Clients are just like you and me. They hate bill collection phone calls; no matter how justified or skillfully done.

A phone call will also tell you if your client is still with the company. If not, well, you're in for some interesting times.

Degree

Media

Pros

Cons

E-mail, or letter, to your client's boss: Use a phone call if previous acquaintance permits.

This option often gets some attention.

It may not get your bill paid, but they'll know you're out there and ready to bench press your position.

Managers don't like to get involved in debts incurred by a subordinate. This approach also reveals desperation on your part that can harden client flak jackets.

The outcome, here, is often dependent on internal company relationships (friendships) about which you probably know absolutely nothing.

Degree	Media	Pros	Cons
	The deadbeat database: E-mail to your client (and his/her superior) that their delinquency has been posted on your deadbeat database.	This tends to encourage payment if the client feels that a keyword search on his/her company would reveal the unpaid invoice.	Quasi extortionate, this option requires website access. And, of course, your future with this client will have no future.

Largely a bluff, unless you're prepared to spend $500 to $600 bucks buying search engine positioning. Click here to see what I did. (No, I've never collected.)

Degree

Media

Pros

Cons

Small claims court: An official court summons, requiring a personal appearance by your client, can soften intransigent positions.

Inexpensive, sometimes effective, but slow and very time consuming.

Your client must be in the same jurisdiction you are.

Continuances are not uncommon.

Even if you finally get a judgment, enforcement and collection can take months.

Additional Debt Resolution Resources
The website links listed for reference are not endorsements.

Jim Heath has a good overview on "How to Collect Business Debts"

You'll find hundreds of collection agencies on the Web. Here are some references:

There are also legions of attorneys specializing in debt collection.

Attorney Forwarding Network

Coming up next: Power (electrical) for the Planners

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