Bad Referral Partner #1

We received a consulting project from a referral partner. Per the terms of our partnership agreement, the partner invoiced and collected from the corporate client, then paid us. The problem was that our partner had cash flow problems and didn't pay us. One stall they used was to tell us we had calculated the referral fee incorrectly. Recognizing their difficulties, we were patient. But finally we had to make strong collection attempts. The complimentary close, "Very truly yours," is how lawyers often sign correspondence, so it indicates an increasingly tougher stance. Larry LaRue was the executive director of the referral partnership. David Clay was a CareerLab consultant.

Outcome: we finally prodded and shamed them into paying us. And in the future we required advance payment to complete assignments for them. They resented paying upfront, but it worked.

Cc: Larry LaRue
Subject: Past Due Account -- WestCor Utilities

Dear Fred and John,

We have been trying to collect past-due accounts for WestCor Utilities for many months without any success.

One of the invoices (#8507) is dated November 22, 20--, nearly 10 months ago. I understand you have had turnover in your office staff, but that does not explain this lack of payment.

Apparently, you were disputing our method of figuring the referral fee. As a result, we explained the details of the project to Larry LaRue around July 4th. He confirmed that our method of calculation is correct. We then communicated Larry's opinion to Quon Li, your CFO.

The balance due now is $4044.77 per our invoice dated August 15, 20--. David Clay  will be in contact with you to find out when this will be paid.

Very truly yours,
:Bill Frank

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