I have a client now, that the job was for $6,000 and they were shopping around I guess trying to find a cheaper solution. I mentioned we just started a financing plan for websites.
To be honest, I don't know if it's going to work or not... BUT.. for this specific deal this was the offer...
$1,000 down payment... $500/mo until April of 2013.
So I'm gaining interest and easily made a $6,000 job a $7,000 job for web design.
If they fail to make a payment within 30 days it is "charged off" and sent to a collection agency that I am partnering with that will take I think 30-50%. They report it to the credit bureaus, and all that.
Now... There are advantages to doing this, one is that I don't need to wait for a website to rank. Another is that I still have recurring income even though it isn't permanent. Another is that I milk the project for more than it is worth because of interest! Possibly even more, with a $100 late payment fee as well.
The disadvantages... there is only one, and that is after the terms are up, I don't own the site and I lose the monthly income.
I know it's similar to the rent a site model, but a little different...
What do you guys think? I don't believe I'm going to do this regularly but since doing that on thursday, I signed up 2 more people to do the same thing and it seems to be popular.
Has anyone ever tried this?