Collections Should Never Be a Surprise

This week, we had an RAB Sales Advisory Committee meeting. I love those meetings. Leaders from companies of all sizes advise RAB staff on initiatives and issues and provide direction on how best to serve our members. A concern was raised about collections and helping sellers understand their importance. So, of course, my first step is a sales tip…

Collections? I’m having enough trouble making sales; now you want me to collect, too? If you’ve ever thought that you’re not alone.

Ask most salespeople what part of the job they dislike most and collections usually lands near the top of the list. Not because they don’t understand the importance of getting paid, but because most sellers are relationship-driven people. We like helping clients. We like solving problems. We like creating ideas and growing business. Calling someone about a past-due balance feels uncomfortable because it runs counter to the role we believe we play.

There’s also another fear lurking underneath the surface: “What if they get upset and cancel?” That fear causes many sellers to avoid collection calls entirely, delay them far too long or soften the conversation so much that the client never feels any urgency to resolve the issue.

By contrast, very few professions struggle emotionally with getting paid for the services they provide. Your dentist doesn’t apologize for sending a bill or making you pay at the time of service. Your attorney doesn’t hesitate to ask for a retainer. Contractors often demand partial payment before the work even begins.

Somewhere in sales, however, many people adopted the mindset that we provide the service first and hope to get paid later. That mindset is backward:

That’s an important distinction because it changes collections from something emotional into something professional.

The best collection calls start before the business is ever written. Before asking for the order, I want the client to understand the credit terms. Not hidden in fine print. Not buried in accounting paperwork. I even go so far as to ask them to sign our “credit terms” sheet before I present the signature page for the proposal. If we can’t agree on the credit terms upfront, that’s usually a sign we may not be the right fit.

I also include a “Client Service Commitment” form in all presentations. These are likely things you do anyway, but in the crowded world of sellers, putting my service commitment in writing sets me apart.

One of my “service commitments” is:

“Keeping you informed regarding account balances and billing status as part of my ongoing service commitment.”

That one sentence changes everything. Now the collection conversation isn’t awkward. It isn’t personal. It’s simply part of the service you promised to provide.

I believe most businesses want to pay their bills on time. Sometimes an invoice gets misplaced. Sometimes the owner is traveling. Sometimes accounting is behind. Approaching them with grace matters. Assuming positive intent matters.

That’s why the first call should never sound aggressive.

“Part of the service I guaranteed was keeping you updated on your account balance. I wanted to let you know your account is currently past due. Would you like me to stop by and pick up a check?”

No drama. No confrontation. No guilt trip. Just professional communication.

If the balance still isn’t resolved, the second conversation becomes more direct.

“I wanted to follow up because the balance still hasn’t been taken care of and I don’t want it to impact your campaign or future scheduling.”

Again, calm. Respectful. Clear.

By the third conversation, the responsibility shifts entirely to accountability.

“I want to let you know we’ll need to suspend the advertising until the balance issue is resolved.”

Notice what’s missing from all three conversations: emotion.

Too many collection calls go sideways because sellers wait too long, get frustrated and suddenly turn a business process into a personal conflict. That damages relationships far more than professional accountability ever will.

There’s also a confidence component to collections. The more confident the seller the less fearful they are about asking for payment. Deep down, confident sellers believe they bring value. They believe their service matters. And because they believe in the value they provide, they don’t apologize for expecting prompt payment in return.

One of the best ways to protect both revenue and relationships is to remove ambiguity before problems ever occur. If you’d like a copy of my Client Service Commitment form, email me here. I’m happy to share it. (No payment required. ??)

Clarity creates trust.

Ambiguity creates conflict.

Think Big, Make Big Things Happen!

Jeff Schmidt is the SVP of Professional Development. You can reach him at Jeff.Schmidt@RAB.com. You can also connect with him on X, YouTube, and LinkedIn.