Collect that Debt - Your Business Depends on it. K.A.R.M.A. of Phone Prospecting.
The efficiency of debt collection is the difference between a business that will succeed and a business that closes up.
If you do not have control of your debt collection then you will eventually fail.
All businesses that grant credit will be faced with the problem of bad debt at some stage. The best way to deal with bad debt is to have a good debt control system in place.There are three types of bad debt:
- Can pay.
This is where your debtor can pay but will drag out non-payment as long as possible. They do intend to pay but only at the last moment. - Can't pay.
This type of debtor have no means of paying the debt either momentarily or ever. They are not necessarily avoiding payment but do not have the means to do so. - Won't pay.
This type of debtor is the worst. They will try to get away with not paying, know the debt collection routine and will not pay until the matter goes either to court or through a debt collection agency.
The solution to this is to get your money when it falls due or have a collection procedure that does not let your debtors get away with anything. Once you stop chasing the money that is due to you the amount owing to you will increase. The longer you allow a debt to remain unpaid, the less chance you have of recovering it.
There are three ways to collect debt:
- By yourself.
This is the least costly method and involves phoning the debtor, sending letters and as a last resort, going to court to have the debt paid. - By a lawyer.
This involves having your lawyer send letters of demand before it is taken further. A fee will be charged dependent on how long it takes for the debt to be recovered. If going to court is involved and your debtor is forced to pay you through a court order your legal fees could be recovered. However if not, then you will have to cover the court costs as well. - Debt collection agencies.
These are firms such as Baycorp, who specialise in the collection of debts. A percentage of the amount collected is taken as a fee. If the debtor does not pay the debt it will usually affect their personal credit rating.
Copyright 2005 StartRunGrow
http://www.startrungrow.com
StartRunGrow (http://www.startrungrow.com) is a global online information organization that specializes in creating, developing and marketing business help information specifically with the aim of "making business easier" for entrepreneurs around the world. The StartRunGrow objective is to become a dominant player in the business help arena providing end to end solutions for the millions of small and medium businesses worldwide who continue to struggle daily with the difficulties of starting, running and growing a successful business.
Article Source: http://EzineArticles.com/
Do you ever wake up on the wrong side of the bed? Does the rest of the day just follow suit? Have you ever thought that your attitude towards the day might just be coming back to you through misfortunes and bad things through out the day?
Well it happens and it is called KARMA.
KARMA is defined as if you put a negative out there it will come back to you in the form of another negative. So you could say you get back what you put out there.
So lets relate that to your calling of leads.
If you put out a negative presentation you get back a negative result commonly phrased as "I am not interested", "Is this a pyramid scheme", "Is this MLM", or "does this cost anything". So how do you create a positive presentation in order to get back a positive result?
Let call the process of creating an effective phone presentation the K.A.R.M.A. of Phone Presentations.
KNOWLEDGE of the industry is the first thing you need to consider when putting together your presentation. You see if your prospect doesn't have a basic understanding of the MLM business model it will be virtually impossible to develop a successful downline partner. You need to be sure they have an understanding before you can expect them to be productive in your downline. The best way to find this out is to ask early on in your conversation if they could define MLM or Network Marketing.
ACTION step is required at this point. You need to go one of two ways. If they understand MLM or Network Marketing you can move onto the next step. If they don't understand the industry your best move is to educate them before you move into any kind of presentation of your company or product. Make sure you have some websites or emails that you can send them in order to educate them about the industry.
Wouldn't you agree that if you were going to start a restaurant business you ought to know something about the industry? So why should it be any different in our industry? Once you provide education for them then you can follow up with them and move onto the next step.REASONS for each person vary. But as you and I both know there are several reasons that are common and it is important that you begin to find out why they want to start a home-based business. This will begin to make a connection between you and the prospect. You may even find out that you have the same reason as your prospect. This stage is really a stage where you get to know the person. Be sure to NOT ask how much time and money they have to invest when getting to know them.
MATCHING the prospect to your business is the next stage of an effective presentation. Use what you have learned about your prospect and create a bridge between where they are today and your opportunity. Let them know with confidence that with all you know about them at this point you feel your company is a great match for them and it would be worth it to take a closer look.
ACTION time is again upon you. You must now give them the next step in the exploring process. Your company most likely has a process laid out for you whether it is to do a 3-way call with your upline, connect them to a live presentation, or simply send them to your website for more information.
Follow the K.A.R.M.A. presentation and you will be on your way to getting the positive results you desire when calling your leads.
Make it the Best Day Yet,
Scott Adams
Scott Adams is the owner of Home-based business Training & Support company called http://www.Leads2YourSuccess.com; The mission is simple - to help you grow your business!
Article Source: http://EzineArticles.com/
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