Collections Insider

A common question asked of me several times over – “Should I have a web site for my business?” Not only is my answer a resounding YES, a web site is by far the most cost effective communication and advertising tool any business could have.

If you have a business then you provide:
1. a product
2. a service
3. useful information

Radio and TV commercials are generally too expensive for most small business budgets, word-of-mouth is wonderful for established business but not as effective for newer businesses, and expensive direct mailings usually results in your ad going from the mail box to the recycle bin without ever being looked at.

That leaves us with phone books. Let’s face it – phone books are almost extinct. When was the last time you picked one up and actually used it? And if you actually do get a large number of calls from the yellow pages, think about how much more you could get for a fraction of the cost if you were found online!

Check out this post from a phone book ad agent and what he candidly says about phone book directories.

What is the average age of your customer? Did you know the average online consumer is between 18 to 48 years old? That age gap increases every year too. Consider this: an average 5 to 15 page web site for your business telling the whole world (or maybe just the market you want to target) about your stuff, running online 24 hours a day, every day of the year, professionally managed, updated and optimized for search engines by a professional webmaster usually costs on average under $80 per mo. for small and medium business web sites. Certainly, this cost can run into the hundreds or thousands for mega corporate web sites with large Search Engine Optimization (SEO) firms. But for our small business example, this monthly fee equates to about the price of a daily cup of specialty brand coffee. A fee that can also pay for itself in a very short time too.

So what can you do now?

If you don’t have a web site, look for a professional web designer; more importantly one that specializes in search engine optimization. If you already have a web site, get an evaluation and consultation to see how effective it is now vs. what it could potentially be.

Unless you have lots of time and are very adept to learning web designing for fun, avoid the temptation of the “do it yourself” route to creating a web site. There are so many offers online for “free web site with domain name purchase” etc. that suck people in. You get what they say though, a web site, which later you realize no one can find. Most of these basic web site templates are all about presentation and very little about proper search optimization structure.

As I mentioned previously, a web site should be professionally managed. It should also be updated and optimized for search engines. Change is constant for a web site to remain successful. I also recommend a web site to be professionally built to avoid browser compatibility problems, accessibility problems, and other common issues associated with poor planning.

Proof that Success is Possible

An example of successful web site marketing is Your Collection Solution, LLC’s web site www.yourcollectionsolution.com, a web site I currently manage. Jan Conte estimates that 95% of her new business comes to her online via her web site. Since her web site was optimized earlier this year, her daily calls for new business have gone through the roof. Go ahead and try this search for “collection agency ny”, one of her three markets, just by clicking this link and see the results for yourself.

Owning a web site and having it professionally managed isn’t just a must-have, it’s also a financially sound decision. Let’s face it — if you own a business and don’t have a web site (or a properly optimized one), you can be sure your competition is gradually stealing your business through their own properly built and optimized web site.

About the author: John Kelly of 6×6 Design, LLC, is a web designer and search engine optimization professional. His niche is small business website optimization and consultation. He is also the webmaster and I.T. specialist for YourCollectionSolution.com.

Many clients have asked my why some claims are treated differently then others. I would like to present the answer in two articles. This first article will explains how the claims are broken up into two categories and how they are treated from a regulatory standpoint. My second article will address issues such as why a president of a company cannot be held responsible for the debts of the corporation.

In the collection industry debtors/debts are broken up into two categories; consumer claims and commercial claims.

1. Consumer claims are debts owed by individuals, i.e. John Smith, Mary and Tom Jones

2. Commercial claims are debts owed by a business, i.e. XYZ, Inc., Z&Z, LLC.

Consumer collection efforts are governed by the FDCPA. The FDCPA protects debtors’ rights and provides guidelines for the behavior of the collector, collection agency and collection attorney. All third party collection agencies and attorneys must follow the FDCPA or face fines and or legal action. Collection agencies are required to send a debtor a thirty day demand letter which gives the debtor an opportunity to provide proof of payment, pay the debt or dispute the debt before legal action can be taken. The debtor has the right to request proof of the debt and the agency/attorney must provide proof under the guidelines of the FDCPA. Some of the finer points of the FDCPA are:

The hours in which collection agencies are allowed to contact debtors- no earlier than 8am and no later than 9pm. No time that is inconvenient to the debtor.

Written and electronic Communication- No e-mails or faxes. All written communication must include the mini-miranda, This is an attempt to collect a debt and any information obtained will be used for this purpose. Envelopes cannot show anything that indicates the letter is from a debt collector. No postcards.

Legal Representation- If a collector has been made aware that a debtor is represented by an attorney all communication with the debtor must cease. The collector must work with the attorney to resolve the debt.

False representation- A collector cannot use any false, deceptive or misleading representation or means in connection with the collection of any debt. The collector cannot threaten any action that cannot legally be taken or is not intended to be taken.

Harassment- A collector cannot use the threat of violence or criminal means to collect the debt. A collector cannot use profanity or use language that is intended to abuse the hearer.

To read the FDCPA in it’s entirety go to http://www.ftc.gov/os/stautes/fdcpa/fdcpact.htm.

Commercial debtors are businesses that fall under the following business structure; Corporation, S Corporation, Partnership, Limited Liability Company and Limited Liability Partnership.

If a business is a DBA, sole proprietorship or fictitious or assumed name the debt/debtor is considered a consumer claim and the collection agency must follow the FDCPA.

Commercial debtors are not protected by the FDCPA however the Collection agency/attorney should conduct themselves professionally and ethically when handling these claims. Certain tactics can still be viewed as harassment and could provoke a law suit.

I hope this clarifies things further. Don’t forget to check out November’s newsletter for the second part of this article.

About the author: Jan Conte is the President of Your Collection Solution, LLC, a debt collection agency out of Newtown, Pennsylvania. She has over twenty years experience in the debt collection industry. You can find more of her articles at www.yourcollectionsolution.com/blog/.

When I started my business ten years ago I simply paid $35.00 to file my DBA with the county and I was off and running. A few years later I discovered that this structure was not the best structure for me or for the business from a legal standpoint.

As a DBA or sole proprietor I would be held personally responsible for any mistakes made by the business and I would be held personally responsible for the debts of the business. It was not my intention to make mistakes or not pay the bills but as we all know things happen in business. I wanted to be sure that my home, bank accounts and assets would be safe in the event my business suffered a loss or law suit. I spoke with my attorney and accountant and determined that forming a Limited Liability Company or LLC was best for my needs. Today I rest much easier knowing that I am protected.

We all have different financial and legal issues that can arise with our businesses so choosing the right structure is important to you both personally and professionally. Speaking with your attorney and accountant could save you years of anguish and financial loss. Here is a link
to a wonderful web page that explains the different corporate structures. It will help you decide which structure is most advantageous for you and your business. It will give you a place to start before meeting with your attorney and accountant.

About the author: Jan Conte is the President of Your Collection Solution, LLC, a debt collection agency out of Newtown, Pennsylvania. She has over twenty years experience in the debt collection industry. You can find more of her articles at www.yourcollectionsolution.com/blog/.