Getting new business is good for the coffers. So is collecting the fees you’re owed for the services you’ve already delivered. If you’re like most service professionals, you have at least one client who consistently forestalls payment, turning you into a part-time debt collector. Perhaps you’ve sent a polite email reminding them that they owe you money. Perhaps you’ve had a passive-aggressive fantasy wherein you’ve sent a couple of heavies to break your delinquent client’s kneecaps. Personally I’ve tried both, and found them to be equally ineffective. In a soft economy, it takes a strong backbone to demand respect (or charge a late fee).
I recently interviewed collections attorney Robert Weinberg on this subject for my Practice Boomers program. He offered a great insight into why service professionals find themselves in this situation. Here’s a 2 ½ minute excerpt from his interview:
Excerpt from Robert Weinberg interview
I encourage you to take Robert’s advice to heart. Establish clear collections policies with your clients and stick to them. Charge them late fees if they break their payment agreement. Give them a termination warning if they abuse your policy. They may balk, at which point you can establish new payment terms both parties find agreeable. But don’t train them to treat you like a doormat. You do good work for them. Get what's coming to you.
Authored by David Ackert
