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The Allen Magic Collect-A-Fee System, Part 2
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Editor’s note: Yesterday, in part 1 of this 2-part article, attorney Jeff Allen shared the first five tips for collecting more fees. The article concludes below.
6. Send your invoice the day employment commences.
Earlier is too aggressive, while later risks the employer questioning the hire or obtaining the candidate’s cooperation to avoid the fee.
7. Discount the fee for prompt payment.
It’s a well-established business practice, but don’t discount the fee for late payment! This must be strictly an inducement to accelerate the payment.
Whatever discount you want to use is legally acceptable. However, you must also indicate the full fee on your invoice and when it is due. Otherwise, it’s virtually impossible to obtain it later.
8. If the account becomes past due, pursue collection personally.
Why do you think this is recommended?
There are six reasons:
9. Don’t send your placement file to the employer.
More fees are lost by doing this than all of the other mistakes combined.
This is like playing poker with your cards backwards. The result is a complete defense to the employer. This includes a sanitized file and a turncoat candidate.
Whenever some human resourcer says, “Show me why we owe a fee and we’ll pay it,” understand the translation: “Show me why we owe a fee and we’ll show you we can avoid it.”
If you ever feel the compulsion to do this, just ask the employer for its file. That will make you a believer.
10. Refer the matter for collection when it is 30 days past due.
Almost any change in circumstances weakens your position. What can happen?
Here are the typical defenses to placement fees (in order of frequency):
With the exception of the defense that the employer cannot afford to pay (asserted only 5% of the time and often solved by a little patience), The Allen Magic Collect-A-Fee System will help you avoid all of these problems.