Increased turnover without losing that all important personal touch at Internet Marketing Unie
7% more retained revenue for Internet Marketing Unie through consistent follow up of invoices
More than 120,000 participants and more than 3,000 coached entrepreneurs: in more than 8 years, the Internet Marketing Unie (IMU) taught a large number of entrepreneurs about marketing and how they can use this for their business. Participants learn online marketing through seminars to courses, training, videos and blogs.
For a fixed monthly fee, participants have access to all training courses and the community.
“In addition to passing on knowledge, giving feedback and guiding with personal attention, it is also about connecting and sharing successes," says Tonny Loorbach, owner of IMU.
Members can pay the subscription to the community and training per month, quarter or year. That, plus the large influx of inquisitive entrepreneurs, influences the amount of invoices and additional debtor work.
Manual follow up of a large invoice flow
The organisation uses its own payment system to create and send those invoices. Follow up was previously entirely manual.
“We were typically such a company that sent a letter to all outstanding debtors once every six months," says Loorbach. “That barely achieved any results. And with the manual follow up it could also happen that our company had 7% - 8% unpaid invoices at the end of the year."
If you only send the payment reminder after six months, many customers will ignore your letter or email. They take the risk; after all, you were not on top of it the last time. ‘That reminder can wait a little longer,’ your customer thinks,” says Loorbach. The problem is that you ‘just’ credit your doubtful debtors at the end of the financial year. That costs a lot of money and has consequences for your turnover and your cash flow. The financial figures are also unclear,” Loorbach says. “You don’t really know how you are doing. If you have 7% doubtful debtors, then your turnover is only 93% instead of 100%. That changes the calculation of how our company is doing!”
Lots of contact in the community, little about the invoice
The main IMU products are software sales and community membership and training. “Our community in particular is a distinctive factor. There we give our members feedback and guidance," says Loorbach. At the same time, there has hardly been any physical contact about invoices. As a result, the chance of doubtful debtors is much greater. That chance becomes smaller if your customer receives a payment reminder after non-payment, then another, and then a final reminder if the payment is still not made.
With the 7% - 8% doubtful debtors per year, there were literally opportunities to cash in. “For structuring our credit management we have thought about factoring, selling invoices. A major disadvantage: you submit a substantial percentage per invoice. That is why we found it unprofitable," says Loorbach. IMU has partnered with Payt on the advice of other entrepreneurs. The credit management now runs automatically via the software.
Loorbach: “With Payt’s software, we only have to collect 2 - 3 unpaid invoices extra every month to get the costs out. That is a quick result!"
The collection process has also been tackled considerably by the organisation. One of the tricky elements of setting up a debtor process yourself is in the collection process. At Payt, the collection phase is a standard part of the management process. This part of the process is also aimed at finding a joint solution with a debtor. If that does not help, then a bailiff is the next step. If you inform your debtor about this, you must have a collaboration with such an agency. “That is usually where it gets complicated!" says Loorbach.
“If you go to a bailiff with a case, they ask about the files. If you do not have it, nor do you have communication about the invoice, it will be very difficult. Payt offers a simple possibility to switch to legal proceedings after the collection phase. Even with options on a no-cure-no-pay basis. Since all communication for the file is in the Payt environment, it is much easier to start this process."
The personal touch comes first
“We experience the collaboration with Payt as very pleasant. We were personally given an explanation with the software," says Loorbach. You also notice that attention in the software. You can maintain personal contact with your debtors. Previously it was hard work: the invoices were in your accounting package and all your communications were in your emails. Now everything is in one place, in a well-arranged way.
Loorbach: “A personal touch is important in our community. We can continue that personal in contact with our debtors. The great thing about the software: you don’t have to be an expert in debt management, but you do get almost all your debtor positions. That way your figures are balanced and you know much better how you are doing! By working with Payt’s software we have increased our turnover considerably.”