The No Deposit Effect

Understand Your Buyer > How To ConvertThe No Deposit Effect


What is it?

The No Deposit Effect allows buyer to buy without worrying about cashflow issues.

Why does it work?

It works because it helps your buyer to make a decision without worrying about the issue of raising the deposit they need to proceed. They see buying your offering as “cheaper” or “free” as they part with no funds to get what they want – this softens the impact of the purchase and helps to convert interested parties into buyers.

How can you use it?

If you already offer finance, then offering a no deposit offering can help to break down potential barriers and make your offering more accessible to as many people as possible.




Car dealers often use “no deposit” deals as a way to remove the barriers to purchase.



6 different ways to structure payment for your offering:

  1. Pay now start later-Allow buyers to secure something but not take delivery or use it until later when they are ready.
  2. Pay on results  -Take payment when you have delivered the desired result for your buyer
  3. Pay as you go – Allow buyers to pay as they consume your offering.
  4. Prepayment  Allow buyers to create a credit balance that they can then draw down.
  5. Buy now pay later – Allow buyers to “buy|” today but not actually pay for the item until later in the future.
  6. Finance – offer finance and instalment payments to ease cashflow for your buyer.


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