Practical Sales Training™ > How To Convert > The Pay What You Want Effect
The Pay What You Want Effect
What Is It?
The Pay What You Want Effect lets your buyer choose their own price. It’s used mostly for charitable offerings. And it often results in people paying more than you’d have set yourself.
Why Does It Work?
It works because of guilt and peer pressure working together. When you’re asked how much you’d like to pay, a low number feels uncomfortable. It signals something about you, whether that’s fair or not.
How Can You Use It?
This carries real risk for commercial ventures, since some buyers will simply take advantage. But for charitable causes, letting people choose usually creates a net positive result.
When It Works Best
This works best for causes people already feel emotionally connected to. It also helps when the ask happens face to face, or in the moment. That works better than an anonymous online form.
When It Becomes Dangerous
This becomes risky for commercial products. Buyers can easily pay far less than something is worth. Without the social pressure of a charitable cause, margins quietly erode.
Common Mistakes
Using It Without Emotional Buy-In
Don’t use this model for something people don’t feel emotionally invested in. Without that connection, most buyers will simply choose the smallest number available.
Relying On It Alone
Never rely on this as your only pricing model for a commercial product. Pair it with a suggested amount, or reserve it for genuinely charitable offers only.
The Pay What You Want Effect – An Example
The Royal British Legion runs a “pay what you can” system for their Poppy Appeal.
See also
