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The Pay on Results Effect
Buyers hate risking money on something that might not work. So the Pay on Results Effect removes that risk completely.
So you only charge for the result itself. Not the time or effort it took to get there.
What Is It
The Pay on Results Effect means charging only for the deliverable result. That time and effort behind it doesn’t factor into the price.
Why Does It Work
It works because buyers are always trying to minimise risk. When you only pay for the result you want, you can’t lose.
So you don’t have to risk any money to get there. That creates a no-brainer.
How Can You Use It
Offer A No Win No Fee Structure
This works best for services, rather than physical products. Could you offer a “no win no fee” approach? So the buyer only pays when you succeed.
Make Sure The Maths Still Works For You
Make sure successful clients cover the cost of the ones that don’t work out. So long as that balance holds, this converts new buyers well.
When It Works Best
This works best when buyers are nervous about wasting money on an uncertain outcome. So removing that risk removes their main objection.
It also suits offerings where you can clearly define and measure the result. So the clearer the outcome, the easier this is to promise.
When It Becomes Dangerous
This becomes risky if you can’t reliably deliver the result. So a failed guarantee costs you money and damages your reputation.
It also backfires if the payment terms are vague. So be specific about what counts as a result before you agree to anything.
Common Mistakes
Promising Results You Can’t Control
Guaranteeing an outcome outside your control sets you up to fail. So only guarantee what you can actually influence.
Underpricing The Result
Charging too little per result means your successful clients end up covering your losses. So price each result high enough to make the model sustainable.
The Pay on Results Effect – An Example
A lead generation agency offers a simple guarantee. It says: “You don’t pay unless we book qualified appointments for your team.”
Instead of a monthly retainer, they charge per result. A booked sales call with a decision maker costs £250. Closing a deal over £10k earns them a £1,000 bonus.
So the client faces zero upfront risk. Also, the agency stays directly incentivised to deliver.
This also positions the agency as confident and focused on performance. It removes the “what if it doesn’t work?” objection before it’s even raised.
You’ll see the same model elsewhere too. Recruitment often charges only on hire. Also, legal services often work on a no win, no fee basis. Sales consultants sometimes charge a percentage of the revenue increase they create.
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