Postcard | Payment Psychology - One-pay vs part-pay - Rethink Central

Payment Psychology – One-pay vs part-pay

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Q&A December 6, 2022 1pm Eastern

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Prefer to read? Here’s the transcript:

Is it better to have your clients pay in a lump or monthly in part-pay?

This topic is fascinating. And it’s something that I talk about on strategy calls and when clients are signing up. I tell them exactly what I’m about to share with you. So this isn’t secret psychology stuff. This is something I’m very open about.

Clients who pay in a single lump get better results.

Obviously, it’s also nicer for us if someone hands us a big chunk of cash in one go.

The interesting thing about coaching and Masterminds is that when you sign up and pay all in one go, what you’re doing is you’re paying now for a result in the future.

When you pay that big lump of cash and hand it over in one go – and I always give a vast discount for this –

the pain of paying out a big amount will support you through the coming months

of when the work gets done before you reach the goal.

And it works. It really works.

Because once you start hitting the goal it’s just pure results. The payment is now far enough into the past that you don’t feel that pain. You’re just getting the good thing.

So it’s this: first the cost will ride you through those first months, then the results will ride you through the rest of it. That works super well.

Here’s what happens with monthly payments:

When people are paying monthly, even though that’s a perfectly reasonable thing to do, each month when that payment goes out of their account they will evaluate whether or not it was a good month.

The thing about coaching is that some months will be tougher than others. Part of what people pay me for is that I will help get them results. Which means that sometimes I will have to push a bit.

I’m never nasty, never Evil Liz. But there will be a month, normally in the middle of a Mastermind, when we have to move people along. Sometimes we’ve got to refocus.

And that month, if it’s been a bit tough, that month when the payment goes out, clients will look at it and go,

’Hmm, not sure I like Liz this month.’

So that reassessment month-by-month chips away at that absolute confidence in the final results.

Will clients in both the pay monthly and the pay at the start get good results? Of course, they will.

I’ve noticed repeatedly that the people that pay in a lump get better results. It’s also better for your cash flow, it’s all very nice.

Obviously, sometimes people can’t pay all in one go even with a discount so they have to pay monthly.

What I’ve started doing is kind of a hybrid

where I get people to pay a fairly sizeable deposit and then a smaller monthly amount. While this is getting great traction, the results are quite markedly different.

If you’re finding the same in your business do let me know. I would love to know. And if you’re finding a completely different result.

Obviously, not all of us are in a position to be able to pay out big chunks of cash all the time so obviously, you have to offer monthly payment.

But if you can, explain to your clients why paying in a lump is better for them.

I know when I tell my clients this they all nod and go, ‘Well, if I could I would pay in a lump’. Because we know it rings true.

We know that this is how our human soul works. Pay now and then get the results later.

So if you can, use exactly what I said and I hope you get the big results.

And if you have questions about your own business come along to one of my regular Q&A sessions. There’s a box below just drop your email in there. It would be lovely to see you.

 

 

Q&A December 6, 2022 1pm Eastern

Next live call is October 18, 2022.
Come along to ask your questions about launches, strategies for marketing, Masterminds or whatever you're stuck on in your business.

Add your email below and I'll send you the zoom info for the calls. See you there!

Or come say hello on Instagram here.  I microblog daily. 

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