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NEVER GIVE CREDIT TO LOCAL ACCOUNTS!

M

marconi2

Guest
HELLO ALL,

YOU FOLKS PROBABLY ALREADY KNOW THIS....BUT IF I CAN HELP ONE SALES PERSON AVOID THIS IT'S WORTH IT....

EXTEND CREDIT TO NO ONE! I JUST GOT BURNED BY A GUY WHO WAS PAYING UPRFRONT. I GOT COMFORTABLE, HE GOT RESULTS, HER BURNED ME. DO NOT LET THIS HAPPEN TO YOU!

WE GET SO EXCITED TO WRITE UP A SALE SOMETIMES BUT CONSIDER THIS....
WE GET NOTHING IF THEY DO NOT PAY.


WATCH OUT FOR "CLAIMS CONSULTING" NEVER SELL THIS GUYS ADS WITHOUT A CHECK UP FRONT. HE TRAVELS TO AREAS THAT HAD A HURRICANCE AND SUES INSURANCE COMPANIES. HE GETS GREAT RESULTS THAN STIFF YOU.
 
Thanks for the heads up on this guy. Could you be more detailed in the description so if he goes by another business name we'll still recognize him?
 
the business name was.... claims consulting
watch out for any of these atttorney groups looking to make money off a hurricane.

cash in advance only, good luck
 
Having been selling for 30+ years I would take issue with your statement "Never give credit to local accounts." However, never give credit without oing a credit check. 95% of all local accounts pay their bills. Some red-flag categories: bars and restaurants, satellite and cell-phone service re-sellers, anything that is itinerant (ad-hoc committees, someone just passing through town, etc.), politicians, and anyone who hasn't been in business for 6 months to a year. Another red flag.... the more they protest about deserving credit the leerier I get. Those with good credit usually don't have a problem either giving references or just writing you a check. If you grant them credit, start asking for the check at 31 days and don't quit asking until they pay. Finally, have them sign something. If there's a dispute, you have written evidence of the deal.
 
Thank you for your post. Do you happen to have a sales contract I can draft from? I am new. Thanks. Not sure if this is ok to ask, but hey... you don't know until you ask right?
 
I once worked for a station that essentially billed no one. It was a small station, and the only radio game in town. With the exception of a chain grocery and a chain pharmacy, every other client was C.O.D. No one seemed to mind, they were used to it. Radio in general is too quick to extend credit just to get a sale. Most businesses require business references before extending credit. Radio in general should be a little more careful. Helps the sales rep, and it helps the station.
 
SonoSational18 said:
Having been selling for 30+ years I would take issue with your statement "Never give credit to local accounts." However, never give credit without oing a credit check. 95% of all local accounts pay their bills. Some red-flag categories: bars and restaurants, satellite and cell-phone service re-sellers, anything that is itinerant (ad-hoc committees, someone just passing through town, etc.), politicians, and anyone who hasn't been in business for 6 months to a year. Another red flag.... the more they protest about deserving credit the leerier I get. Those with good credit usually don't have a problem either giving references or just writing you a check. If you grant them credit, start asking for the check at 31 days and don't quit asking until they pay. Finally, have them sign something. If there's a dispute, you have written evidence of the deal.
Click to expand...

Excellent advice and a very comprehensive list of the CIA clients. Good job sono.

P.S. I loved your jingle package. Especially Series 18B ;-)
 
Often times the key is to make sure the salesperson sees or communicates with the advertiser (as elementary as that sounds). If you haven't seen the account until they are 60 days late, look out for the excuses like "I didn't even know it was still running," "I didn't get any response so don't feel I should pay," "My salesperson never came around, so I didn't even know we were on the radio," etc.

Old news to anyone in the business, but 'fly-by-night' and 'new' businesses don't receive credit. If they can't pay it now, what makes you think they can pay it next month?

Finally, I have found that packaged deals can be enough of a financial incentive to get advertisers to pay in advance. Instead of $500 per month, how about a prepay for three months of $1300? Or if you can't afford to lose any cash in the deal, offer upsale items to the $1500 like web presence, extra spots, a remote, or anything to make it an incentive to pay up front. If you really search, you'll find extra items that can be thrown in without diluting or devaluing your spot inventory.
 
Sounds like you gave credit to a carney, with a nice name. 95% of local retailers are ok and will want the option of credit. Credit card is an option.
 
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