Offering flexible payment plans is a smart move for online coaches and service providers. They make your offers more accessible, give clients financial ease, and create consistent cash flow for your business.
In case you need a refresher, multi-payment plans are a win-win:
- Lower the barrier to entry without lowering the value
- Let clients pay in smaller, digestible increments
- Create consistent monthly cash flow
- Align with values like accessibility and inclusivity
- Often boost your overall revenue compared to pay-in-full only
But (there’s always a but, right?) — failed payments.
Cue the awkward tension, like realizing you’ve been ‘on camera’ during that Zoom masterclass — bumbling around, eating your lunch, and fixing your messy bun for the class to enjoy.
The Hidden Tax of Payment Plans: Chasing Down Invoices
When a client’s card declines, it feels like a fun mix of awkward and frustrating. Do you:
A) Pretend it didn’t happen and hope they notice? B) Overthink every word in a follow-up email? C) Throw a full-blown internal tantrum about being a “bill collector”?
Good news — you don’t have to pick.
The reality? Failed payments are common, expected, and 100% solvable (without sacrificing your energy or vibe).
Our Old Way (Spoiler: It Wasn’t Cute)
Once upon a time, at The Social Bungalow, we handled failed payments like this:
- Email #1: Sweet and hopeful
- Silence
- Email #2: Supportive, a little firmer
- Awkward explanation or no reply
- Email #3: Gently direct
- Ghosted (again)
It was time-consuming, emotionally draining, and honestly? A little too much like chasing people down for gas money.
The New Way (Automation Meets Boundaries)
Here’s how we upgraded — and increased recovered payments by 120%.
Step 1: Automatic Reminder (Day 1)
A pre-written, automated email is sent via our checkout software (we use ThriveCart) as soon as a payment fails.
Most of the time? It’s a simple card update situation and resolves itself immediately.
Step 2: Enter the Follow-Up Workflow (Day 2)
If payment is still outstanding after 48 hours:
- A Zapier automation tags the client into two places: a tracking spreadsheet and an ActiveCampaign email automation.
- They enter a 3-email sequence, spaced 60 hours apart:
- Email 1: Heads Up! + How Can We Help?
- Email 2: We Tried Again, Let’s Chat
- Email 3: We’ll Be Revoking Access in 24 Hours (but we’re here if you’d like to resume)
- Once the payment goes through, they’re automatically removed from the sequence.
No awkward manual follow-ups required.
Step 3: Internal Tracking
A simple spreadsheet logs overdue payments, helping us:
- Spot patterns
- Refine payment plan structures if needed
- Reach out personally if repeat issues arise
Why This Works (Without Feeling Gross)
This system is about:
- Respectfully reminding clients without shame
- Protecting your energy
- Creating clear, compassionate boundaries
It’s structure without sacrificing the client relationship.
And since implementing this? We’ve recovered 120% more payments without turning into part-time debt collectors.
Pro Tips for Smooth Payment Plans
- Always outline payment terms clearly (contract, client handbook — you choose)
- Automate what you can, but stay human in your touchpoints
- Consider early payoff options for clients who want to clear their balance after getting results
Remember, you didn’t build an online business to spend your time chasing credit card declines.
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