Why I Don't Do Payment Plans

What's up everybody? This is Russell Brunson. Welcome to Marketing Secrets podcast. Tonight we are going to be hanging out with some Cinnamon Toast Crunch.

So the big question is, how are entrepreneurs like us who didn't cheat and take on venture capital, were spending money from our own pockets. How do we market in a way that lets us get our products and our services and the things that we believe in out to the world and yet still remain profitable? That is the question and this podcast.

Will give you the answer.

My name is Russell Brunson and welcome.

Welcome to Marketing Secrets. Alright, so why am I talking a little quiet? Because it's late at night and my wife and kids, everyone's asleep. Why am I eating Cinnamon Toast Crunch? Because I have committed that by Funnel Hacking Live, I'm going to be in shape. And so Bart Miller, who helped me dress me at last, Funnel Hacking Live, he just went through his big body transformation, got ripped in a six pack and everything. I was like, all right Bart, we're gonna do it. Just get me in shape. So we're gonna do it. But it doesn't start till the day after Thanksgiving. So I got a week to eat garbage. And so I've been eating really healthy for the last like six months. Right now I'm gonna go as unhealthy as possible. So I'm eating Cinnamon Toast Crunch at like midnight. How great is that? I'm pretty excited about that. Alright, so I was just scrolling through Facebook right now and somebody asked a question, they said, how come RB assuming that's me hopefully, why doesn't Russell use payment plans on anything? And it was fun. Exhausting all the. Everyone's kind of throwing out their guess why they think I don't use payment plans and stuff like that. So I'm just gonna tell you why. So a couple things. First off, I don't. It's not that I don't believe in payment plans. I think a lot of times you'll make more money when you offer payment plans. But there's just things about it that drive me crazy. Especially like online. Like one of them, one of the big ones drive me crazy is the that fact fact that like there's no repercussions if somebody signs up for thousand dollar course and do a three pay of, you know, whatever they do one of the three payments, then you don't do anything else. Like there's nothing you can do, you can't go after them, you can't close on them. Like just kind of frustrating, you know, in digital world, unfortunately a Lot of people who get one payment through, they'll go through some of the course and they feel okay not doing it. This kind of bugs me. But that's not really the real reason, you know, the real reason why I don't do them for the most part. And I won't say I won't do them because there'll be situations. I'm sure I will in the future. One of our new hiring coaching programs, we will be having a payment program, which I've never done that in the past, but we will be just help people with cash flow and stuff like that. But the main reason I don't is because one person commented, said Russell doesn't do it. Because Russell's rule is don't sell the broke people. And while that's mostly true, it's not that I don't like broke people or that I don't want to help them, right. But if you study my stuff socially, Dot com secrets, the book I talk about the value ladder, right? Where I'm taking people up a value ladder. And I know full well a lot of people come to my world and they don't have money when they first come in. So I'm like, okay, how can I provide the most value possible? So they have everything they need to be successful, right? And on the front end are my books or my perfect webinar training and things like that. That our free plus shipping are really low price and I don't hold stuff back on that. Okay, Dan Henry's good example. He struggled for years here at the Dotcom Secrets book. Learned how to do my webinar, did it, made a million bucks in five months, right? So. And I've been giving away the perfect WEBINAR now for two or three years. Just like the script and the video and PowerPoint slides. And people always ask me, like, why do you give it away for free? That's like your best stuff. I'm like, because if someone uses it and they make money, then they can afford my expensive stuff. So for me, it's like, that's really my more my goals. I want people come in, I want them to use the stuff I have and it makes them more money. And then they can come to the next things if they're jumping up to like four or five tiers. If they have money, that's fine. They can shortcut success. But I also feel like sometimes it's not. It doesn't serve your customer shortcut their success. We first started doing funnel Hacker TV the very first time. I was just Taking businesses who I like, the people like the entrepreneur, but they weren't having success yet. We were coming and doing all the work for them, launching their businesses. And what we found is that people weren't ready for that. And we launched it, handed back to them. And these people that get these businesses back, they didn't, they hadn't learned all the stuff they needed to, to have success with it and they struggled. And like, despite the fact that I gave them the keys to a Ferrari, like they couldn't drive the Ferrari. I think sometimes we do ourselves disservice. Sometimes people just jump too far too fast. They spend a bunch of money they don't have and then they try the thing, it doesn't really work because then in the foundation stuff, they need to get there, right? Business is all about for us is like increasing our capacity, right? Like when we first start business, you have a big capacity to do a lot of stuff, right? Like, I didn't when I got started, like, my capacity was like, you know, I struggled to read a book and then I read a book and I was like, well, the book was awesome. Then my capacity expanded a little bit and I just more and expanded and more and expanded. Now, you know, 15 years later, we're running a huge company. We're, you know, one of the top, probably 2 or 300 most visit websites in the world, making a lot of money, doing a lot of stuff, helping a lot of people, like all those things. But like, man, if I would have just been handed this 15 years ago, I promise you, I would have destroyed it. Like, not because I wanted to, but because I wasn't ready for it. And I think a lot of times, I mean, I know I could sell more stuff if I offer these huge payment plans, let people in, but the reality is someone comes in and out of payment plan they can't afford and they're trying to learn stuff and they can't afford it and then, you know, then they need to go buy traffic or they need other things that you do and they can't afford it. Like it doesn't really serve them or, or me. So I want people to, to, to grow with us. All right? So that's why we do stuff, soy stuff, low ticket stuff, middle tab, mid tier, tier, high tier, things like that, right? And that way people come in, they learn, they apply, and then if they get value, then they should naturally send up, right? It's kind of like in my stack I have a line that I say in there. It's funny because it's a really good closing line. And I've seen a lot people knock it off since I started using it. But it's true for me, right? And for me, it says, I have a philosophy here, my company, that if I can't make you money, then I don't deserve yours. And I honestly actually do believe that, which is why I don't just go and hard close everyone on these huge payment plans. And I see a lot of people do product launches and they're selling $2,000 course or three, you know, 12 payments of 300 bucks. I'm like, 12 payments, 300 bucks. Like, I remember being those days, and that was like, that's a lot of money, right? And like, it almost does them a disservice. It's like, okay, if I had 12, 300 bucks, like, what, you know, 12 months from now, then I'll have my stuff in place and I can start buying ads again because I had this huge budget of 300 bucks a month, you know, like, anyway, that's one of my thoughts. So, yeah, hope that kind of helps. Again, it's not that I won't do payment plans. I will do them in the future. There'll be times and seasons. I'll do them. A lot of businesses, I recommend them, so it's nothing against them. I just for me personally, that's my goal, that's my vision, and just try to blow people's minds at every step of the value ladder. If I do that correctly, then they'll be able to afford the next thing and the next thing and the next thing. You know, I mean, I could tell you probably a couple dozen examples of this, but Dan Henry's one of my favorite. He joined inner circle and he posted on Facebook. He was like, I don't know why I joined Russell in a circle. I feel like I got. He's like, I made a bunch of money. Everything. I don't really need to be. I don't really want to be in it. But I feel like I owed Russell 25k for all I got from the free book I bought. So how cool is that if your customers feel that way, like, man, I got so much from this. I feel like I owe you. I need to invest your higher ticket things. I got so much from down here. That's what I'm trying to create. So there you go. Hope that helps you guys. Hope you helps you again. You know, obviously we're talking about this from like in my business, which is teaching business owners how to grow. So it's like it's very applicable because it's like, hey, make money here and grow. But it's the same in any business. Let's say your business is helping marriages, right? Like, you give them something free and they, you know, increases the spark in the relationship or fixes something, they feel better. Like, man, they will want to give you more and follow you further and all that kind of stuff. So anyway, it's a fun game we play. I love it. Appreciate you guys as customers, as friends, as subscribers, listeners, and hope that you got some good ideas out of this. Let me get back to my Simtos crunch before it all gets cold and soggy. It's a little soggy already. So I'm gonna go and by fun locking live, I will be sexy. I promise you guys. I'll have a six pack. It'll be awesome. If not, then I won't say anything else about it. All right, everybody, talk to you soon. Bye.

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