September 16, 2013 By Robyn Ireland
It’s an exciting time of year for niche magazines! Right now, ad sales teams are diving into selling complete ad programs for the coming year, making deals and signing contracts left and right, filling up ad pages like crazy. That’s great, right?
You know what’s better? That two or three months from now, instead of prospecting and making more sales, those sales teams will be calling clients to collect overdue accounts…the same clients they have to try to sell to next year. Wait, did I say this was better? Worse, I meant much, much worse!
Why? Your sales people aren’t accounts receivable management experts, so it’s hard for them to get tough with your key overdue clients without hurting sales chances, and the time they should spend making new money is spent collecting old money. All this adds up to a BIG dam in your magazine’s revenue stream!
That’s just the position the founders of Government Security News were in six years ago. They wanted to keep a small staff of 10-15 people – that would focus entirely on creating quality editorial, marketing and sales for the magazine, a constantly-updated web site, and two e-newsletters serving their 40,000 print and 100,000 online readers. That meant they didn’t have (and didn’t want to manage) an accounts receivable staff, so their sales team had to carry the load. They had unpaid accounts that aged, clients that were slow to pay, and there wasn’t enough time to focus on NEW business.
That all changed when Government Security News outsourced its accounts receivable to Media Receivable Management. Media Receivable Management are A/R experts specializing exclusively in the media industry.
“With MRM, we don’t have to handle training, turnover and administration of collections people,” said Adrian Courtenay, a managing partner at GSN. “Plus, we get efficient, reliable reporting and don’t have any of our sales people making collections calls. Instead, we have the experts at MRM handling our collections, allowing our sales people to do what they do best.”
Not only was it more cost-effective turning over accounts receivable to experts than hiring and managing personnel in-house, it freed up their sales team to generate more revenue since MRM got advertisers and agencies to pay much faster. That adds up to better cash flow, and what publisher doesn’t want that?
By outsourcing, Government Security News took advantage of Media Receivable Management’s expertise in the media industry and MRM’s ability to walk the fine line between collecting outstanding balances while maintaining good relationships with advertisers. Now GSN’s sales and management teams can breathe a sigh of relief every time they pick up the phone.
That means the Government Security News team can focus on what it does best: generating revenue and providing in-depth coverage of news, strategies and technology related to defense and homeland security for federal, state, county and municipal agencies and security vendors.
Maybe it’s time your magazine got back to what it does best as well!