This past week (2013-11-18/22) I received an angry email from a former client who I was forced to send to collections. $55 this person dodged for a full year. Each contact made by either phone or email was responded to with “ah, ya, I’ll pay that – send me a copy of the invoice”, which we did, and they didn’t.
The final email from this person was signed with “you’ve lost a client forever!”; we’re better off. Relying on this person’s business would have meant the end of my business. We had already decided that they were no longer a client once the account was forwarded to collections. This final step is necessary as we are not a collections agency – that’s not how we make money.
As a service business we are often guided by clients to act as they wish. It’s a collaborative relationship: clients want service (and almost all pay) and we provide the service (for pay). Chasing someone for payment is expensive and not what we are good at. The ROI diminishes considerably in this scenario.