Secret #55 – Why I Don’t Do Payment Plans

SECRET #55: WHY I DON’T DO PAYMENT PLANS

If you structure your value ladder right, you’ll never have to do a payment plan.

On this episode Russell answers a question posted on Facebook about why he doesn’t do payment plans. Here are some of the awesome things he has to say in today’s episode.

  • The reason Russell doesn’t have payment plans, and it’s not only because he doesn’t sell to broke people.
  • Why being handed an already successful business that you didn’t have to work for will usually cause it to fail.
  • And how Russell justify’s giving away stuff for free and what his philosophy about it is.

So listen here to find out why Russell doesn’t usually give an option for payment plans.

Full Episode Transcript Expand Transcript

What’s up everybody? It’s Russell Brunson, welcome to Marketing Secrets podcast. Tonight we are going to be hanging out with some Cinnamon Toast Crunch.

Alright so, why am I talking real quiet? Because it’s late at night and the wife and kids, everyone is asleep. Why am I eating Cinnamon Toast Crunch? Because I have committed that by Funnel Hacking Live I’m going to be in shape. So, Bart Miller who helped dress me at Funnel Hacking Live, he just went through this big body transformation, got ripped with a six pack and everything. I was like, “Alright Bart, we’re going to do it, just get me in shape.” So we’re going to do it, but it doesn’t start until the day after Thanksgiving, so I got a week to eat garbage. I’ve been eating really healthy for the last 6 months, right now I’m going to 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, I was just going through Facebook right now and somebody asked a good question, they said, “How come RB (I’m assuming that’s me, hopefully), why doesn’t Russell use payment plans on anything?” It was fun because all the, everyone’s just kind of throwing out their guess of why they think I don’t use payment plans and stuff like that. I’m just going to tell you why.

A couple of things, first off, it’s not that I don’t believe in payment plans. I think a lot of times you will make more money when you offer payment plans, but there’s just things about it that drive me crazy. Especially online, one of the big ones to drive me crazy is the fact that there’s no repercussions if someone signs up for a thousand dollar course and you give three payments or whatever, and they do one of the three payments and then they don’t do anything else. There’s nothing you can do, you can’t go after them, you can’t call them out. It’s just kind of frustrating.

In the digital world, unfortunately there are a lot of people who, they’ll get one payment through, they’ll go through some of the course, then they’ll feel okay not doing it. It just kind of bugs me. 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 that I won’t do them because there’ll be situations I’m sure I will in the future. One of our new higher coaching programs will be having a payment program, which I’ve never done that in the past, but we will be just to be helping people with cash flow and stuff like that.

But the main reason I don’t is because, one person commented and said, “Russell doesn’t do it because Russell’s rule is don’t sell to broke people.” And well, that’s mostly true. It’s not that I don’t like broke people or that I don’t want to help them. But if you study my stuff, especially Dotcom Secrets, in the book I talk about the value ladder. I’m taking people up the value ladder and I know full well that people likely come into 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? On the front end, on my books, my perfect webinar training, things like that that are free plus shipping or really, really low price. I don’t hold stuff back on that.

Dan Henrie’s a good example, he struggled for years, read the Dotcom Secrets book, learned how to do my webinar, did it and made a million bucks in 5 months. I’ve been giving away the perfect webinar now for 2 or 3 years, just the script and the video and power point slides. And people always ask me, “Why do you give it away for free, your best stuff?” I’m like, “Because if someone uses it and they make money, they can afford my expensive stuff.”

So for me, that’s really more of my goal. I want people to come in and I want them to use the stuff I have and it makes them more money and then they can come for the next things. If they’re jumping up four or five tiers, if they have money that’s fine, they can short cut success, but I almost feel like sometimes, it does not serve your customer to short cut their success.

When we first started doing Funnel Hacker Tv the very first time, I was just taking businesses, a few I liked, the people, the entrepreneur, but they weren’t having success yet. We would come in and just do all the work for them, launching their businesses. And what we found is people weren’t ready for that. We’d launch it and hand it back to them, and the people who get these businesses back, they hadn’t learned all the stuff they needed to have success with it. And they struggled and then despite the fact that I gave them the keys to a Ferrari, they couldn’t drive the Ferrari.

I think sometimes we do ourselves a disservice. Sometimes people just jump too far too fast, spend a bunch of money they don’t have, and then try the thing and it doesn’t really work because they don’t have the foundation stuff they need to get there. Business is all about for us, increasing our capacity. When you first start a business you have a big capacity to do a lot of stuff. I did, when I got started my capacity was, I struggled to read a book. Then I read a book and I was like, that book was awesome, and my capacity expanded a little bit and I did more and it expanded, more and it expanded.

Now 15 years later we run a huge company where we’re one of the top two or three most visited websites in the world. Making a lot of money, doing a lot of stuff, helping a lot of people, all those things. But if I would have just been handed this 15 years ago, I promise you I would have destroyed it. Not because I wanted to, but because I wasn’t ready for it. And I think a lot of times, I know I could sell more stuff if I offered these huge payment plans to let people in, but the reality is someone comes in on a payment plan they can’t afford and they’re trying to learn stuff and then they can’t afford it, and then they go buy traffic and other things they need to do and they can’t afford it, it doesn’t really serve them more, or me.

So I want people to grow with us. So that’s why we do stuff, the way low ticket stuff, mid tier, high tier things like that. That way people come in, they learn, they apply, and if they get value they should naturally ascend 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 had a lot of people knock it off since I started using it, but it’s true for me.

For me it says, “I have a philosophy here at my company that if I can’t make you money then I don’t deserve yours.” And I honestly do believe that, which is why I don’t just go hard close them on these huge payment plans. We see a lot of people do product launches, they’re selling a $2,000 course, or twelve payments of $300. I’m like, the problem with $300, I remember me in those days and that was a lot of money. It almost does them a disservice. If I have twelve payments of $300, twelve months from now, I’m going to have my stuff in place and start buying ads again because I got this huge budget of $300 a month. So that’s kind of my thoughts.

So I hope that kind of helps. Again, it’s not that I won’t do payment plans, I will do them in the future. There will times and seasons I will do them. A lot of businesses I recommend them. So it’s nothing against them, I just think for me personally, that’s my goal, that’s my vision. Just try to blow people’s minds at every step of the value ladder, and 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 could tell you probably a couple dozen examples of this but Dan Henrie is one of my favorites. He joined the Inner circle and he posted on Facebook. He was like, “I don’t know why I joined Russell’s inner circle, I feel like I got, I made a bunch of money and 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 for the free book I bought.”

How cool is that if your customers feel that way. Man, I got so much from this I feel like I owe you. I need to invest in higher ticket things because I got so much down here. That’s what I’m trying to create.

So there you go, I hope that helps you guys. I hope it helps you, again, obviously we’re talking about this for my business which is teaching business owners how to grow. So it’s very applicable because it’s like “Hey make money here and grow.” But it’s the same with any business. Let’s say your business is helping marriages right. You give them something free and it increases the spark in their relationship or it fixes something and they feel better, 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. I appreciate you guys, as customers, as friends, as subscribers, listeners, and I hope that you got some good ideas out of this, I’m going to get back to eating my Cinnamon Toast Crunch before it all gets cold, gets soggy. It’s a little soggy already so I’m going to go. And by Funnel Hacking Live I will be sexy. I promise you guys, I will have a six pack. And if not then I won’t say anything else about it. Alright everybody, talk to you soon. Bye.



Secret #60 – What We Learned From Our First $100,000,000 In Sales…

Be a fly on the wall during the ClickFunnels partner meeting and hear the #1 thing each of us learned on our journey so far.

Secret #59 – Being An Introvert Inside Of An Extrovert’s Calling

Interesting thoughts after my whirlwind week.

Secret #58 – End Of The Year Planning Meetings And Simplifying Your Value Ladder

The two most important things your can do between now and the end of the year to double your business for next year.

Secret #57 – The #1 Way To Get Thousands Of People To Join Your Membership Site In Less Than 15 Minutes

This is the marketing secret I'm dusting off from the archives of one of the greatest campaigns we ever ran.

Secret #56 – It’s Not The Thing… It’s The Marketing Of The Thing That Counts

A conversation I had today explains the reason why most businesses end up suffocating and dying.

Secret #54 – The Bigger You Get, The Bigger Your Problems Get

A quick play-by-play of the last 24 hours of my crazy life.

Secret #53 – Beware Of All Platforms… Except This One

A podcast from Russell and Todd in a private plane.

Secret #52 – Aligning Your Will With The Marketplace

Interesting thoughts I had on my drive home from Salt Lake City.

RANT: If You Want Me To Wipe Your Butt, Go To Daycare

Russell's rant about what's keeping people from success.

Secret #51 – Focusing On Your UA, $100K-A-Day Role

How we're creating systems so that everyone can focus on their unique abilities.

Secret #50 – The Secret Closing Technique I Learned From One Of The Top Copywriters In Singapore

I use this in every webinar, every Facebook live, every sales letter, and pretty much every time I sell anything, and I'm going to give it to you for free!

Secret #49 – Adding In Your Second Entrepreneurial Super Power

The second super power that you need to add that's, unfortunately, invisible to the entrepreneurial eye.

Secret #48 – What Really Happened Behind The Scenes Of Our Biggest Webinar Ever

Here's a behind the scene's glimpse of the chaos that ensued in the 24 hour webinar.

Secret #47 – The Big Secret, Making AND Keeping Commitments

One of the traits of all the truly successful people in the world.

Secret #46 – And THAT’S The Day You Became An Entrepreneur…

It happened the day you took personal responsibility for a problem that wasn't your own.

Secret #45 – Some Of My Favorite Highlights From This Week’s Inner Circle Meetings

The power of vulnerability, acting with urgency, and a whole lot more...

Secret #44 – Begin With The End In Mind

A really cool lesson I learned from my new coach and how it applies to your funnel.

Secret #43 – Before States And After States And The Power Of Contrast

Listen in on this unique conversation after a late night mastermind outside the Clickfunnels headquarters.

Secret #42 – Listen, Do, Succeed

The fastest way to succeed in anything in life.

Secret #41 – Behind The Scenes Of Our $100,000,000 Traffic Meeting

All the little things you're not doing to get more traffic now.

Gary Vee Q&A From The Viral Video Launch Party – Part 2

Listen in on live Q&A from Gary Vaynerchuk (Part 2 of 2)

Gary Vee Q&A From The Viral Video Launch Party – Part 1

Listen in on live Q&A from Gary Vaynerchuk (Part 1 of 2)

Secret #40: Recap From The Viral Video Launch Party

The secret behind making the important become urgent.

Secret #39: How We Went From $0 To $100,000,000 Using Growth Hacking And Sales Funnels (Without Taking On Any Outside Money)

People ask Russell this all the time. Today he reveals ClickFunnels' secret competitive advantage.

Secret #38: “99 Yards Doth Not A Touchdown Make”

The last yard is often the hardest.

Secret #37: Why Does The Fuel You Eat Actually Matter For An Entrepreneur?

It all started with a box of Lucky Charms...

Secret #36: The REAL Secret To Going From 7 To 8 Figures

What got you here won't get you there...

Secret #35: Calling Out Your People

How to connect with potential customers who don't understand what you do.

Secret #34: Payoff Your House First…

It took Russell over a decade to understand this unconventional investment advice he learned from his dad.

Secret #33: STOP STOPPING!

If you're going to reach success, you need to get this simple message stamped on your brain...

Funnel Hacker Onboarding #4 – How Do You Sell Your Offer?

On this episode Russell goes over the final step of the Clickfunnels onboarding process... how to present your offer online.

Funnel Hacker Onboarding #3 – What’s Your Offer?

On this episode Russell goes over the third step in the new Clickfunnels onboarding process, which is creating an offer.

Funnel Hacker Onboarding #2 – What’s Your Micro Value Ladder?

On this episode Russell talks about the second step of the funnel hacker onboarding process, the value ladder.

Funnel Hacker Onboarding #1 – Why Funnels?

On today's special episode of the Marketing Secrets podcast, Russell shares a video for the new onboarding process in Clickfunnels.

Secret #32: I Get Knocked Down But I Get Up Again…

How Russell recovers from crises

Secret #31: The Four Levels Of Value

Working harder won't make you more money. You need to access different resources.

Secret #30: 68% Of Your Visitors Never Even See Your Funnel…

It's amazing that marketers don't discuss this simple and lucrative funnel fix more often...

Secret #29: The Secrets Of “Validation”

Your supporters might be secretly mad at you if you're neglecting to do this simple thing.

Secret #28: What Are The Rules You Filter Your Opportunities Through?

Do you say "yes" to too many opportunities? If so, this episode is for you.

Secret #27: DON’T Become A Person Of Success…

The harder you try to get it, the more success escapes you.

Secret #26: Creating Your Perfect Listener Or Customer Avatar

In my 15 years of doing business, I've never heard this critical business concept explained so perfectly.

Secret #25: Road Trip Rant: It’s Time To Get Real About HOW To Have Success…

A 96 minute rant to help you get back on track for success.

Secret #24: How To Grow From 10 To 100 Employees

A unique behind-the-scenes look at ClickFunnels business structure.

Secret #23: Two Marketing Tricks From Some Old School Marketers

There's no school like the old school...

Secret #22: Beware These Two Things…

Russell is surprised to see so many salespeople make this silly mistake.

Secret #21: Does Being An Expert Really Help Grow Your Company?

Russell responds to John Reese "talking trash" about Expert Secrets.

Secret #20: You’re One Funnel Away – Part 2

Russell continues to share the good, the bad, and the ugly of his journey to success.

Secret #20: You’re One Funnel Away – Part 1

Russell shares his failures, bankruptcy stories, and ups and downs of his entrepreneurial journey.

Secret #19: Your Own Personal Coaching Session With Russell

If you're just "one funnel away"... how far away is that funnel?

Secret #18: How To Make It Rain

Russell's advice to a financially struggling friend.

Secret #17: Why Are Vacations So Hard For Entrepreneurs?

Do vacations stress you out? If they do, this might be why...

Secret #16: Confusing Activity with Achievement

Do you ever get frustrated with losing customers? Today's episode shows you the counter-intuitive secret to customer retention.

Secret #15: A Marketing Secret We Learned At Krispy Kreme Doughnuts

Who know doughnuts could be so helpful...

Secret #14: How To Increase Your Tips (And Your Profit Margins)

What was going through my mind when tipping at IHOP.

Secret #13: How To Succeed When You Have No Resources

Why having resources will actually hurt you as an entrepreneur and how to become more resourceful.

Secret #12: The #1 Way To Know If You’re Going To Succeed Or Fail Before You Even Start

After working with tens of thousands of entrepreneurs, there is one common thing I've found that will instantly let me know if you'll succeed or fail.

Secret #11: Using Your Unique Abilities And Others To Get Crap Done Fast

How I got more done today then most people will get done in the next three months, and I did it by leveraging this one simple concept.

Secret #10: Conversation Domination And The Dream 100

People who read blogs... read blogs, people who watch videos... watch videos, etc...

Secret #9: Entrepreneurial Scars

Why these things can and should move you forward as opposed to pulling you backwards.

Secret #7: Cool Stuff We Learned During Our “7 Day Launch”

Here is a recap of a 7 day internal launch that made over a million dollars and what we learned along the way.

Secret #6: How To Do SEO The Right Way By Using The Dream 100

The dream 100 isn’t just for JV partners… it’s the key to ALL traffic.

Secret #5: You Gotta Have Faith… Marketing Faith

Someone wants to join Russell's Inner Circle but is afraid to pay without knowing the results.

Secret #4: Planting Seeds Of Doubt

A cool underground way to overcome your competitors.

Secret #3: The What And How

The secret from going from zero to a million dollars is all about identifying what it is you're selling and how you're selling it.

Secret #2: How to Turn 3,000 Email Clicks into 300,000 Visitors

Russell just had an epiphany about email marketing... On today's episode Russell reveals his new email strategy to multiply his traffic.

Secret #1: How To Outspend EVERYONE Profitably

Is it possible to start a business without raising money? Russell explains how you can outspend all your competitors without needing to take a single dollar from venture capitalists.


The beginning of my journey from

$0 - $100,000,000

in revenue WITHOUT any venture captial

Who is Russell Brunson?

Over the past 10 years, Russell has built a following of over a million entrepreneurs, sold hundreds of thousands of copies of his books, popularized the concept of sales funnels, and co-founded a software company called ClickFunnels that helps tens of thousands of entrepreneurs quickly get their message out to the marketplace.