In this episode, I’m talking about payment plans when you should offer them, how many payments to give people, and how to decide what makes sense for your offer. I explain why most offers can benefit from having a payment plan, while also sharing some simple rules of thumb based on your price point. We look at when a payment plan can make buying easier for your customers while also helping you manage your own business cash flow.
I also explain why I generally don’t recommend extending payment plans beyond the length of your programme, and the risks that can come with customers stopping payments after they’ve already received the full programme. We look at whether you should charge more for a payment plan, why a longer payment plan can be a useful strategy during the final 48 hours of a launch, and how it can help attract people who have been sitting on the fence. Ultimately, payment plans aren’t about making your offer cheaper or convincing someone to buy something they can’t afford—they’re about giving people flexibility while creating a payment structure that works for both you and your customer.
3 Key Takeaways
- Use Payment Plans to Give Customers More Flexibility
Most offers can benefit from having a payment plan, as long as the structure makes sense for the price and type of programme. For lower-priced offers, Teresa recommends keeping payment plans relatively short, while very low-cost offers may not need one at all. The goal is to give people an option to spread the cost, rather than encouraging someone to purchase something they genuinely cannot afford.
- Keep Payments Within the Programme Timeline
Teresa generally recommends not extending a payment plan beyond the point when the programme finishes. If someone stops paying after they have already received the entire programme, it can be much harder to manage the situation. Keeping payments within the programme timeframe helps ensure that access and payment stay aligned, while also making the investment feel more connected to the value the customer is receiving.
- A Longer Payment Plan Can Help During the Final Days of a Launch
Introducing an extended payment plan in the final 48 hours before your cart closes can help convert people who are interested but hesitant because of the monthly payment. Spreading the cost over a longer period can make the monthly amount feel more manageable and give you another valuable angle to promote during the final days of your launch. However, if you use this strategy, make sure your terms and conditions are up to date and that you have processes in place to manage potential payment defaults.
LINKS TO RESOURCES MENTIONED IN TODAY’S EPISODE
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