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.

6 different ways to structure payment for your offering:

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

The Pay on Results Effect

6 different ways to structure payment for your offering:

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