payment-plan-offer

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.

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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.

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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.

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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.

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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?"

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Phase 4: Polish

1. Implementation Checklist

• Payment processor configured with recurring billing
• Failed payment retry logic set up
• Dunning emails configured (payment failed, please update card)
• Access control rules defined (if pausing on missed payments)
• Terms clearly stated on checkout page
• Confirmation email includes payment schedule

2. Dunning Email Sequence

Write 3 emails for failed payments:

1. Day 0: "Your payment didn't go through — here's how to update your card"
2. Day 3: "Quick reminder — we need your updated payment info"
3. 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

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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.

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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.