So you’ve just delivered the killer presentation, your audience is excited by your offer but for some reason they seem reluctant to hand over their payment card…could it be that the immediate investment is too high?
Hang on, I’m not suggesting you discount your prices here…but have you considered making the immediate investment so low that for your audience the purchase becomes a ‘no-brainer’?
So, how can you do that without discounting?
The answer is flexible payment plans…otherwise known as installments!
Firstly, consider the cost of your workshop or product…is it low enough that most clients should be able to pay the full amount up front? If the investment is already small then it is possible that price isn’t the issue.
But let’s assume your offer requires a large upfront cash investment. In these cases flexible payment plans could make it easy for your customers to buy as it removes one obstruction to the sale.
Clearly you will want some form of upfront payment so consider offering an upfront deposit option plus one or multiple installments.
There are several options for flexible payments:
2 payments…the first is a deposit at the time of ordering, the second due 30 days later (but full amount paid before delivery)
3 payments…as before, the first is due at the time of ordering, the second 7 days prior to delivery and the third 30 days after delivery
4 payments …collect deposit at order stage, and collect the other 3 at set intervals before and after delivery
If you are marketing a digital product, perhaps you could stagger access to modules in correlation with each payment stage (E.g: client receives instant access to the first module and future modules become accessible upon receipt of future installments)
Should you decide to offer flexible payment plans, I’d suggest keeping the choice simple by offering one flexible option alongside full payment upfront.
I’d also recommend adding a markup if clients opt for flexible payments options… there should always be an implied discount for full payment upfront. The reality of course is that flexible payment plans incur additional administration costs for you…plus a certain element of risk…so make sure you pass these costs on to your client.
For example; if your product costs $1,000, you might want to consider marking the cost up by 20% for flexible payments…therefore two installments of $600.
It goes without saying that your order form needs to have full terms and conditions stated. For clients choosing flexible payments, make sure they read and sign your T&Cs that clearly state all payments are payable…no ducking out after part payment.
Don’t forget to state the most important clause…that you will take action against non-payers!
For added protection, I highly recommend you obtain the full name, email address, all telephone numbers and home postal address details for client orders and keep this information secure…ideally with electronic backup.
I’d invite you now to take some time to think about your own payment options. Do you encounter regular resistance from your audience to place orders after your presentations? Give some thought into how you can overcome this obstruction and whether offering flexible payment options could be the right solution for your customers.
Are you offering your clients flexible payment options? Have you noticed a difference in the take up of your offer? Perhaps you have encountered the resistance from your prospects to buy and you’re wondering how you might be able to overcome this? Please do leave me a comment and tell me how installments work for you.