The Pay as you Go Effect

Understand Your Buyer > How To ConvertThe Pay as You Go Effect

What is it?

The Pay as you Go Effect is all about providing or creating a consumable version of your offering so your client’s spend is dictated by their consumption.

Why does it work?

It works because it allows buyers to control their spend. They only pay for what they consume which means as the seller,  you have multiple opportunities to sell repeatedly to the same client. It can also help you to reach those who need only a part of your offering or the bare minimum. A win/win.

How can you use it?

If you don’t already have the ability to offer this, how could you make your offering consumable?

Create a limit which will require buyers to buy again to get more. If you have a service based offering, could you limit the number of hours/calls/emails/projects/requests or another variable that your client will naturally consume?

If you can, you can then charge clients for more units of this resource when they need them and thus make additional sales to the same clients.



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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