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Marketing Your Offline Business - Upfront Payment vs Monthly

by FitMarketer
14 replies
How do you get your customers to pay and what works best for you?

For the past year I have been getting 50% upfront with 50% upon completion from clients in my offline business

I sell sites, apps, mobile websites, and social media.

I have recently launched a new service and want to take monthly payments to make the income recurring.

Anyone doing this? And what is the best strategy to sell this

Thanks
#business #marketing #monthly #offline #payment #upfront
  • Profile picture of the author daniyal100
    Originally Posted by FitMarketer View Post

    How do you get your customers to pay and what works best for you?

    For the past year I have been getting 50% upfront with 50% upon completion from clients in my offline business

    I sell sites, apps, mobile websites, and social media.

    I have recently launched a new service and want to take monthly payments to make the income recurring.

    Anyone doing this? And what is the best strategy to sell this

    Thanks
    Yes I am making recurring monthly payments with a secret service but I am not gona reveal the name of the service just like you.
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  • Profile picture of the author davidreese
    I started offering monthly payments via PayPal subscription.
    It has made life much easier and made my income much more stable.
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    David Alger
    Thumbtack Bugle We Get the Word Out

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  • Profile picture of the author smsagent
    Originally Posted by FitMarketer View Post

    Anyone doing this? And what is the best strategy to sell this
    Yes, other people are doing this. The best "strategy" is to ask "What is your credit card number, expiration date, CSC code, name on the card, address associated with this account and 'Do you accept the charge?'"
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    • Profile picture of the author RichBeck
      Originally Posted by smsagent View Post

      Yes, other people are doing this. The best "strategy" is to ask "What is your credit card number, expiration date, CSC code, name on the card, address associated with this account and 'Do you accept the charge?'"
      smsagent,

      Wow! I don't know about the best "strategy"....

      I know people who wouldn't give this information to their Rabbi or Priest to write down... Some "IM Dude" writing it down on paper... :rolleyes:

      I see they are going for the "close."

      I would simply have an Android Tablet..... and say, "I accept monthly payments via PayPal. Would you prefer to pay using my tablet or your PC?"

      All the Best,

      Rich Beck BCIP, MCSD, MCIS
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  • Profile picture of the author bsummers
    It all depends on you. You can advise your clients that you only take monthly payments. Do not make it an option so that the only way to pay is monthly. You cannot sell this, it's not part of your service.
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  • Profile picture of the author FitMarketer
    So most of you recommend going monthly only?

    Not offering both?
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    • Profile picture of the author RichBeck
      Originally Posted by FitMarketer View Post

      So most of you recommend going monthly only?

      Not offering both?
      FitMarketer,

      I think it works out better for both to use a monthly fee...

      Consider...

      I pay $1,000 per month for XYZ service....

      I paid $12,000 for XYZ service this year....

      Most people I encounter think of $12,000 as more money... a "big" chunk of money... even though they are exactly the same.

      It is simply a perception. But, perception is reality.

      All the Best,

      Rich Beck BCIP, MCSD, MCIS
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      • Profile picture of the author FitMarketer
        Originally Posted by RichBeck View Post

        FitMarketer,

        I think it works out better for both to use a monthly fee...

        Consider...

        I pay $1,000 per month for XYZ service....

        I paid $12,000 for XYZ service this year....

        Most people I encounter think of $12,000 as more money... a "big" chunk of money... even though they are exactly the same.

        It is simply a perception. But, perception is reality.

        All the Best,

        Rich Beck BCIP, MCSD, MCIS
        Yes this is very true perception is important.

        I am thinking about offering a 1 time payment as well as monthly give the client a choice
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        • Profile picture of the author RichBeck
          Originally Posted by FitMarketer View Post

          Yes this is very true perception is important.

          I am thinking about offering a 1 time payment as well as monthly give the client a choice
          FitMarketer,

          I can tell you up front... with one time payments.... many clients believe that is a "forever" service....

          They pay you once... You work until the end of time....

          With the monthly, they associate the payment with the work for that month...

          I also love I can fire the client at the end of the month without any concerns about haggling over how much should have been charged.... how much should be refunded.... It becomes a nightmare.

          Of course, this is for services....

          For "project" work, I would do a 50% non-refundable payment on contract execution and 50% on completion.


          All The Best,

          Rich Beck BCIP, MCSD, MCIS
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          • Profile picture of the author FitMarketer
            Originally Posted by RichBeck View Post

            FitMarketer,

            I can tell you up front... with one time payments.... many clients believe that is a "forever" service....

            They pay you once... You work until the end of time....

            With the monthly, they associate the payment with the work for that month...

            I also love I can fire the client at the end of the month without any concerns about haggling over how much should have been charged.... how much should be refunded.... It becomes a nightmare.

            Of course, this is for services....

            For "project" work, I would do a 50% non-refundable payment on contract execution and 50% on completion.


            All The Best,

            Rich Beck BCIP, MCSD, MCIS
            Yes that's totally true.

            I had a client this year who paid for a website last year when I was just starting out. I gave her a complete bargain on return for some referrals (Which she never gave btw)

            When it came to paying for the hosting this year she didn't want to pay! Even though I stated it last year in the contract she thought it was a one time fee!

            Cheeky!

            She paid eventually but not without putting up a fight.
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  • Profile picture of the author JohnJMJKEnterprises
    When you offer a monthly expenditure, it allows for more flexibility for the business owner. For any payments you are just going to be taking one time, I would say anything under $2500 you should be taking all up front, anything over that you can do 50% on start up and 50% on completion! Just my two cents!
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  • Profile picture of the author imperets
    The best strategy to start earning recurring payments is to upsell to existing customers. Some examples are to offer website maintenance, SEO, social media marketing, etc...
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    Flippa Super Seller Teaches You How to Sell Completely NEW Sites for $XXX a Piece
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