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

Payment Psychology – One-pay vs part-pay

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Q&A December 2nd, 2020, 1.30pm Eastern

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

And this is fascinating. And this is something that on strategy calls and when clients are signing up with them 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.

Now obviously, it’s also nicer for us if someone hands us a big chunk of cash in one go. But for a coaching client or a Mastermind client when you pay all in one go the interesting thing about coaching is that 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 – when you pay in one go the pain of that 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 has now far enough into the past that you don’t feel that pain. And you’re just getting the good thing.

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

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.

Now, 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.

Now, 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.’ And so that reassessment month-by-month chips away at that absolute confidence on the final results.

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

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

And obviously sometimes people can’t pay all in one go even with a discount so they have to pay monthly. So 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. And this is getting great traction. But the results are quite markedly different.

And 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.

But monthly, obviously, you have to offer it. Obviously, not all of us are in the position to be able to pay out big chunks of cash all the time. But if you can, explain to your clients why. 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. Kind of… 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. And it would be lovely to see you.

 

Q&A December 2nd, 2020, 1.30pm Eastern

Next live call is December 2nd 2020 at 1.30pm Eastern.
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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