| name | payment-plan-offer |
| description | Designs payment plan structures with terms, messaging, and implementation guidelines. Use when you want to offer installment pricing to increase conversions. |
| allowed-tools | Read Write Glob |
| metadata | {"author":"matthewhitcham","version":"1.0"} |
Payment Plan Offer
When to Use This Skill
Use this skill when you need to:
- Design payment plan options for a product or service
- Write payment plan messaging for sales pages and checkout flows
- Structure terms, pricing, and policies for installment payments
- Create the comparison framing between pay-in-full and payment plan options
DO NOT use this skill for subscription pricing models, financing through third-party lenders, or BNPL (buy now pay later) integrations. This is for self-managed installment payment plans.
Core Principle
A PAYMENT PLAN REMOVES THE PRICE OBJECTION WITHOUT DEVALUING THE OFFER — THE TOTAL INVESTMENT STAYS THE SAME OR SLIGHTLY HIGHER, BUT THE MONTHLY COST FEELS MANAGEABLE.
Phase 1: Brief
Required Inputs
| Input | What to Ask | Default |
|---|
| Product/service | "What are you selling?" | No default — must be provided |
| Full price | "What is the one-time payment price?" | No default — must be provided |
| Number of installments | "How many payments?" | 3 payments |
| Payment plan premium | "Are you okay charging 10-20% more for the plan?" | Yes, 10-15% premium |
| Payment processor | "What do you use for payments?" | Stripe or platform-agnostic |
| Access policy | "Do buyers get full access immediately or unlock as they pay?" | Full access immediately |
GATE: Confirm the details before designing the plan.
Phase 2: Plan Structure
Payment Plan Design
## Payment Plan Options
**Option A: Pay in Full**
- Price: $997
- Benefit: Save $[X] compared to the payment plan
- Access: Immediate, full access
**Option B: Payment Plan**
- Price: 3 payments of $367 ($1,101 total)
- Schedule: First payment today, then every 30 days
- Premium: $104 (10.4% premium for financing flexibility)
- Access: Immediate, full access
Pricing Psychology
- Payment plan total should be 10-20% more than pay-in-full
- This premium is the "cost of convenience" and compensates for cash flow risk
- Present the pay-in-full price as the "best value" option
- Always show both options side by side — let the customer choose
Terms and Policies
## Payment Plan Terms
- Payments are non-refundable after the refund window (first 30 days)
- Missed payments: 7-day grace period, then access paused until current
- Failed payment retry: automatic retry at 3, 7, and 14 days
- Cancellation: remaining payments are still owed; access continues through paid period
- No early payoff penalty — customers can switch to pay-in-full at any time
GATE: Approve the plan structure before writing the messaging.
Phase 3: Write Messaging
Sales Page Payment Section
## Choose Your Investment Level
**Best Value — Pay in Full**
One payment of $997
✓ Immediate full access
✓ Save $104 compared to the payment plan
✓ [Bonus for pay-in-full buyers, if applicable]
[Enroll Now — $997]
**Most Flexible — Payment Plan**
3 monthly payments of $367
✓ Immediate full access
✓ Spread the investment over 3 months
✓ Same program, same results
[Enroll Now — $367/month]
Checkout Page Copy
Write the payment option selector copy for the checkout page:
- Clear labels for each option
- Total cost visible for the payment plan
- Any pay-in-full bonuses highlighted
Payment Plan FAQ
- "What happens if I miss a payment?"
- "Can I switch to pay-in-full later?"
- "Is the program different for payment plan buyers?"
- "When are payments charged?"
- "What's your refund policy for payment plans?"
Phase 4: Polish
1. Implementation Checklist
2. Dunning Email Sequence
Write 3 emails for failed payments:
- Day 0: "Your payment didn't go through — here's how to update your card"
- Day 3: "Quick reminder — we need your updated payment info"
- Day 7: "Final notice — your access will be paused until payment is current"
3. Conversion Benchmarks
- Payment plan selection rate: 40-60% of total buyers
- Payment plan completion rate: 85-95% (below 85% signals pricing issues)
- Impact on total revenue: 15-30% more sales when payment plan is offered
Anti-Patterns
- Same total price for both options — if pay-in-full and payment plan cost the same, there is no incentive to pay in full. You lose cash flow.
- Too many installments — 12 monthly payments for a $997 product creates high default risk. Keep it to 2-4 payments.
- No failed payment process — without dunning emails and retry logic, you will lose 10-20% of payment plan revenue.
- Restricting access for payment plan buyers — giving fewer modules or delayed access punishes them and increases chargebacks.
- No terms on the checkout page — the payment schedule and total cost must be clear before purchase. Hidden terms create disputes.
Recovery
- Low-price product (under $200): Payment plans below $50/month feel trivial and create more admin than they're worth. Recommend a 2-payment option only.
- High default rate (over 15%): Shorten the plan (fewer, larger payments) or require pay-in-full with a money-back guarantee instead.
- User wants 12+ installments: Recommend 3-4 payments max for digital products. Longer plans belong in formal financing arrangements.
- No payment processor set up: Recommend Stripe for its built-in subscription and dunning features. Provide setup guidance.
