What is the Main Advantage of Performance-Based Fees?
In the past, it was quite common for a collection agency to charge per account placed, along with sign-up, monthly or annual fees. A few agencies still operate this way, but today, such a fee structure is considered archaic and unproductive. Why? Upfront fees remove a major portion of the motivation to collect an account.
|Logic dictates who would be more motivated to collect your overdue accounts: the company that has already been paid in advance or the contingency-based company that has to perform and collect in order to be compensated?
|Obviously, the contingency fee structure lends itself to a considerably more motivated workforce, which is why the most productive agencies, including ONLINE, choose to do business this way.|
The ONLINE Utility Exchange