RSSM Digital Fist Interview Edition December 2019 - Page 26

FINANCE 5 Things Everyone Gets Wrong There are 5 main things people get flat out wrong about recruitment placement fees. Most of the things people get wrong are before they even have a candidate get back door hired and have to go chasing down the money they have already earned. Number 1 is getting a contract signed. Num- ber 2 is avoiding arbitration clauses in your contract. Number 3 is knowing you have the right to remain silent when someone does not pay you. Number 4 is knowing when to turn it over for col- lections. Lastly, number 5 is never telling your client you have voided their contract. If you can do these 5 things, you will help yourself out tremendously in not getting back door hired in the first place but also making it much easier to collect the debt. 26 01 Get A Contract Signed 02 Avoiding Arbitration Clauses 03 Knowing You Have the Right to Remain Silent when Someone Does not Pay You WWW.RSSM.BIZ Having a signed contract is a game changer for collecting debt. It makes it much clearer cut on whom owes what money to whom if there is a dispute. Some might say it was implied when they decided to work together. This a very weak argument when it comes to getting paid on past due debt. It is even weaker than verbal contracts. Some of the shortfalls with verbal contracts are that they cannot last longer than a year, and if the contract cannot be fulfilled in 12 months, it no longer exists. Save yourself a headache and time and just get a contract signed! Our in-house attorney Samantha Cole hates arbitration clauses when it comes to collec- tion accounts for a good reason. Many people see this clause and assume it is the best way to handle everything, but this is not the case. It seems great with email contracts, but if something goes wrong, it can backfire on the person who was doing everything right. It is no longer on the person who did something wrong and the costs are instead split evenly between the 2 parties. We have seen many people get themselves into trou- ble agreeing to this clause. Many times after it is clear someone is not going to pay, people start trying to “fix it” on their own. In doing this, people often end up backing themselves into a corner with trying to take less money because less money is better than no money at all. This really hurts their case when they hire someone to fight for their money on a commission, and they have it on record saying they would be “happy for just half of the money.” WWW.RSSM.BIZ