Understand Your Buyer > How To Convert > The Pay on Results Effect
What is it?
The Pay on Results Effect is about only charging clients for the deliverable result, not the amount of time and effort necessary to achieve the result.
Why does it work?
It works because as buyers we are seeking to minimise our risk. By only paying when you receive the result you desire, it not only means you can’t lose, you also don’t need to risk any of your money to achieve the result. It creates a no-brainer.
How can you use it?
This works for service based / intangible offerings rather than products. Depending on your offering, could you operate a “no win no fee” approach which incentivises your buyer to buy and you to succeed? So long as the downside and cost of not achieving the result for your client are outweighed by the payments from successful clients it’s a viable way to engage and convert new buyers.
Example:
A lead generation agency offers this guarantee:
“You don’t pay unless we book qualified appointments for your team.”
Instead of charging a monthly retainer, they charge per result:
-
£250 per booked sales call with a decision-maker
-
£1,000 bonus if the client closes a deal over £10k
Why it works:
-
The client faces zero upfront risk
-
The agency is directly incentivised to deliver results
-
It positions the agency as confident and performance-focused
-
It removes the “what if it doesn’t work?” objection
This model is often seen in:
-
Recruitment (payment only upon hire)
-
Legal services (no win, no fee)
-
Sales consulting (paid % of increase in revenue)
See also
Like this kind of stuff? Want more?
Then Practical Sales Training™ is for you…
Action focussed, affordable sales training
for entrepreneurs and small business owners.
Brought to you by James Newell