sometimes the biggest barrier to selling those high-ticket online courses isn’t the quality of the content but the upfront cost.
That’s where payment plans come in and they’re a must!
Imagine this: You’ve poured your heart and soul into creating an incredible course packed with valuable knowledge and actionable strategies.
You’re confident it can truly transform lives but the price tag might be a bit daunting for some.
That’s where payment plans become your secret weapon.
By breaking down the cost into smaller more manageable installments you open up your course to a whole new audience.
The Power of Payment Plans: More Than Just Affordability
It’s not just about making your course more accessible.
Payment plans can actually boost your sales and revenue in a way you might not expect.
Think of it like this:
- Commitment and Engagement: A small upfront payment acts as a commitment signal. It shows that your potential students are serious about investing in their learning.
- Reduced Risk: For students payment plans remove the risk of a big upfront investment allowing them to experience the value of your course before making a larger financial commitment. This can significantly increase enrollment rates.
- Increased Conversion Rates: Studies have shown that offering payment plans can lead to a significant increase in conversion rates.
Crafting the Perfect Payment Plan:
Now let’s dive into the art of creating those irresistible payment plans.
Here’s what I’ve learned from years of experience:
1. The Psychology of Payment Plans:
- The Anchor Effect: The first installment sets the stage. It’s tempting to make the initial payment small but I’ve found that a slightly higher first installment perhaps 2-3 times the size of subsequent payments actually encourages commitment. It signals a willingness to invest and that translates into higher completion rates.
- The “Double-Digit Trap”: It’s a psychological quirk but people are more likely to be drawn to prices that are rounded down. For example a $99 payment will seem more appealing than a $100 payment even though the difference is only a dollar. Keep your installments within the “double-digit zone” as much as possible.
- The “Too Many Payments” Dilemma: A longer payment plan might seem like a good idea but it can actually increase the chance of a student dropping out. Keep the number of payments manageable ideally no more than 12.
- The “Fair Price” Balance: It’s essential to strike a balance. The value of your course needs to be reflected in the pricing but it should still be accessible. You can increase the overall cost slightly to account for the extended payment schedule but make sure it’s justifiable.
2. Examples and Strategies:
Let’s say you have a $900 online course:
-
Option 1: The “Classic” Plan
- Initial Payment: $225
- 3 Monthly Payments of $225
-
Option 2: The “Affordable” Plan
- Initial Payment: $100
- 8 Monthly Payments of $100
-
Option 3: The “Longer Term” Plan
- Initial Payment: $180
- 5 Bi-Monthly Payments of $180
3. LearnWorlds: Your Payment Plan Powerhouse
I’ve always been a fan of Learnworlds for its flexibility and user-friendliness.
It makes setting up payment plans a breeze.
- Integration with Stripe: The seamless integration with Stripe lets you handle all your payment processing smoothly.
- Professional Payment Forms: LearnWorlds’ payment forms look clean and trustworthy creating a positive experience for your students.
Payment Plans: A Powerful Tool for Growth
Payment plans are a powerful tool for growing your online course business.
They make your high-ticket offerings more accessible increase your conversion rates and foster a sense of commitment among your students.
When used strategically they can help you reach a wider audience increase your revenue and ultimately make a bigger impact with your knowledge and expertise.
So go ahead and give payment plans a try.
You might be surprised at how much they can boost your online course business!