Re: Problem Getting Advertisers To Pay

From: Robert J. Woodhead (AnimEigo) <trebor_at_animeigo.com>
Date: Sat, 27 Mar 1999 08:41:16 -0600 (CST)

CHAD LEVIN WROTE:
>I have been running my web-site for five months now, and
>bring in a substansial amount of traffic. I do have a
>problem with my sponsors. They don't pay for their bills. At
>the time the banner goes up I send them a invoice with a
>due-date of NET 14 days, and at times I don't recieve
>payments until a month later. Ca someone please give me
>advice on how I can get the people to pay on time.
>
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Consider yourself fortunate. In the video/DVD business, for
example, the big retailers demand NET 90, and if you get
lucky that means you'll get paid in 120 days. At one point,
we had one company that would order a ton of stuff, stretch
their terms, then do a massive return to minimize their
payable, then reorder the same damn stuff the next week.
They were effectively on consignment. Around my office we
referred to their terms as "NET-Never". My poor office
manager, the magnificent Luray, would, if not kill, at least
maim to have your your problems!

The only way to get people to pay on time (other than the
ethical folks, like you, me, and everyone on the list, who
would never think of stretching a receivable) is to offer
them discounts for doing so. Offer them a discount for
prepaying for the flight.

This has a nice side-effect. The customers who do pre-pay
are going to be more reliable and lower-maintenance. You
won't waste time and money chasing your receivables either.
In the long run, it's a good deal for both parties.

==========================================================
Robert Woodhead, CEO, AnimEigo http://www.animeigo.com/
==========================================================
http://selfpromotion.com/ The Net's only URL registration
SHARESERVICE. A power tool for power webmasters.
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Received on Sat Mar 27 1999 - 09:33:33 CST