I recently considered buying a course from a respected, well-known marketer whom I admire very much.
On the checkout page, he offered two options: Either pay $1,000 right now or pay $200 now and $200 for the next 5 months, totaling $1200.
If you consider the interest rate of making payments instead of paying all at once, it’s beyond usuary and something no bank could get away with.
But I totally understand WHY he is charging more to those who make payments.
Some of them will never make all the payments, and money in your hand today is literally worth more than money in your hand tomorrow.
It can be incredibly off-putting to a prospect who desperately wants your program but is strapped for cash. It’s a punishment for not having the funds readily available, and frankly I think we need to help people who are struggling right now, not slap them with an additional $200 payment.
So here’s my solution and see what you think:
In this case I would keep everything the same: One payment of $1000 or 6 payments of $200.
HOWEVER, if they choose the payment option, they can forgo the last payment IF they pay off the entire $1000 amount in a shorter period of time, such as 3 or 4 months.
This means that when they are ready, and prior to the deadline, they call into the office and authorize the company to charge the remainder of the $1000 to their card.
I think this might have several advantages:
First, the course creator is MORE likely to receive a full $1000 because fewer people are dropping out of the payment scheme.
Second, more people are likely to BUY to because they don’t feel they are being financially punished for making payments.
Third, if the course has anything to do with how to make money, and this course did, then it’s a testament to the quality of the course. If the seller believes strongly that his course will make the purchaser money, this is an excellent way to prove it. “Implement what you learn in the course to make back your $1000 (and far more!) before the deadline and we will happily eliminate that last payment for you.”
Yes!! What a great selling point.
Fourth, when his office has these people on the phone making that final payment, it’s an EXCELLENT time to ask for a testimonial. I know that having people email or call means more work for you or your staff, but it’s also an opportunity to strengthen the relationship AND get a testimonial, too.
Fifth, knowing they have a deadline to get the discount can be a huge incentive to get people to dive into and USE the course. And if you want happy customers who come back to buy more from you later, you’re far better off getting them to use what they buy from you now.
To my way of thinking this is a way to make customers happier, provide them with an incentive to get busy and use the product, and it will make more sales, too.
It’s a win-win-win for everyone!