Risk vs. Reward

“Hi. My name is Bill and I am in the collection business.”

Yeah, I said it. I am in the collection business. For many people, that statement alone is a bad thing. I hear people say, “How could you do that?” or “You are one of ‘those people,’ huh?” Yeah, I am one of those people and I do it because it’s an addiction.

Some of you may have recognized my opening statement; it is an introduction that is used quite frequently, if not always, when people introduce themselves at a “12 Step” type meeting that helps people deal with their addictions.

A few years ago, I started thinking that the collection business is actually an addiction, rather than a choice. Many of the people in this business didn’t plan on being here; it just happened. Also, once you are in this business, it’s very difficult to leave it. The main reason that people stay is because of the rewards. Conversely, the main reason that people leave is because of the risks. For those of you that stay, are the rewards worth the risk?

Think about when you started in this business. It doesn’t matter where you are now, just think about that first year, or that first month or even that first day. For that matter, think about your interview. What did you focus on? The money. At least that’s what I focused on. We all walked in to this business with one goal: make money, and a lot of it. I may have missed this, but did anyone tell you about the lawsuits, or the stress or the long hours? Of course not. That would not have been glamorous and if you were told all of that, you may have had second thoughts. Or maybe not…there is still the money and a lot of it.

After a few years, even though you are making good money, you have one of those “conversations” with yourself. We all do it. You know, the conversations when no one is around, but you are still talking out loud and waiting for yourself to answer? The amazing thing is that yourself always answers! Good, bad or indifferent, you always get an answer.

The conversations go something like this; “I love my job and I am making good money, but the long hours and the stress are getting to me.” Yourself says, “Yeah, but you are driving a nice car, living in a nice place and I heard that there’s a medication that can help you out with that ‘stress’ thing.” Ok, you say, I can deal with that!

The conversations continue and you start to talk about your boss or your business partner or your employees and you always seem to get the same answer from yourself; “Yeah, but you are driving a nice car, living in a nice place and I heard that there’s a medication that can help you out with that ‘stress’ thing.” Ok, you say, I can deal with that!

Then, you start talking to yourself about the lawsuits. Yourself stops you in your tracks and just says, “How about giving me some of that medication!”

The collection business is not a business for the faint of heart. It demands a lot out of all of us and it involves long hours and quite a bit of stress, but you know what — I wouldn’t want to be in any other business.

My dad was in the collection business when I was young and even though I wasn’t interested in what he did at the time, he has told me a lot of stories over the years. He told me the bad stories and the good stories, but the ones that really stuck in my mind were the stories about the money.

For instance, he went to work as a collector in the early 70’s and it was his first time being on straight commission. As he recalls, he was a little nervous and my mom was very nervous. They had a mortgage, they had two cars and they had two small children to take care of. Still, he took the risk and it paid off. He started making $4,000.00 per month — in the early 1970’s. For him, the risk was definitely worth the rewards.

I have also heard quite a few bad stories over the years. Not just from my dad, but from many other people. I even have a few bad stories of my own and I am sure that you do too, but it doesn’t seem to matter. We are addicted to this business.

You have made your choice and you are sticking too it, so now you need to remember a couple of important things:

1. You are providing a service and actually a very valuable service.
2. The economy depends on you every day and you need to realize that.

Even though you are asking someone to give you money, in the end, you are actually saving the person money. I know that’s a hard sell, and I don’t recommend using that statement in any of your calls, but it’s the truth. I am not saying that the economy would crumble without collection agencies, but collection agencies definitely serve a role in stabilizing the economy. That’s a conversation that can be saved for you and yourself to have at your convenience.

Is the risk worth the reward? For me, the answer is yes.

Bill Lindala provides training and consulting services to collection agencies, collection attorneys and internal collection departments of creditors. He has been a part of the industry since 1990 and has been involved in all aspects of the agency business. Bill and his company, Premier Consulting Group, LLC, have formed an alliance with Kaulkin Ginsberg to provide these services.

Previously, Bill worked primarily in the third party collection arena in marketing, daily operations, compliance and internal training. He has served as a Certified Instructor for ACA International and was also a Certified Collection Specialist. Bill has written several articles about the collection industry that have appeared in state and national publications, and he has also been asked to speak at various industry functions.