Marketing Secrets with Russell Brunson - Why I Don't Do Payment Plans

Episode Date: November 22, 2017

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 justifies 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. Transcript - https://marketingsecrets.com/blog/why-i-don-t-do-payment-plans Learn more about your ad choices. Visit megaphone.fm/adchoices

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Switch to RBC Avion Visa and get up to 55,000 bonus Avion points. Limited time offer, conditions apply. Visit rbc.com slash Avion. 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. So the big question is this. How are entrepreneurs like us who didn't cheat and take on venture capital, we're spending money from our own pockets. How do we like us, who didn't cheat and take on venture capital, who are 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 answers.

My name is Russell Brunson and 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 a 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 Fennel Hacking Live, he just went through this big body transformation, got ripped in a six-pack and everything.

I was like, all right, 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. And so I've been eating really healthy for the last six months. Right now I'm going to go as unhealthy as possible. So I 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 good question. They said, how come RB, I'm assuming that's me hopefully, why doesn't Russell use payment plans on anything? And everyone's kind of throwing out their guess on why they think I don't use payment plans on anything? And, um, everyone's kind of throwing out their guess on why they think I don't use payment plans

and stuff like that. So, um, I'm just going to tell you why. So, a couple things. First off, 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 things about it that drive me crazy, especially like online. Like one of them, one of the big ones that drive me crazy is the fact that like there's no repercussions. If somebody signs up for your $1,000 course and you do a three pay, you know, whatever. They do one of the three payments, they 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 it's just kind of frustrating, you know, in a digital world. Unfortunately, a lot of people who, we get one payment through, they'll go through some of the course and they feel okay not doing it. It just kind of bugs me. But that's not really the real reason. 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 will be situations, I'm sure I will in the future.

One of our new hiring coaching programs, we'll be having a payment program, which I've never I will in the future. Um, one of our new, um, hiring coaching programs, we will, um, be having a payment program, which I've never done that in the past, but, um, we will be just help people with cashflow and stuff like that. Um, but the main reason I don't is because, um, it's a one person comment. They said, Russell doesn't do it because Russell's rule is don't sell the 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, right? But if you study my stuff, social.com secrets, the book I talk about the value ladder, right? I'm taking people up a value ladder. And I know full well, people like to 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 of that are my books or my perfect webinar training and things like that, that are free plus shipping, a really low, low price. And I don't hold stuff back on that. Okay. Dan Henry's good example. He struggled for years. He read the dot-com seekers book, learned how to do my webinar, did it and made a million bucks in five months. Right. So, um, 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 um 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 to make money

then they can afford my extensive stuff so for me it's like that's really my more my goal is 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 to the next things and they're jumping up like four or five tiers if they have money that's fine they can shortcut success but um i almost feel like sometimes it's not it doesn't serve your customer shortcut their success we first started doing um funnel actor tv the very first time um um i was just taking businesses who i like the people like the entrepreneur but they weren't having any success yet. We were coming in 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 and handed it 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 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, they spend a bunch of money they don't have, and then they try the thing, it doesn't really work, because they don't have the foundation stuff they need to get there.

Business is all about, for us, is increasing our capacity. When we first start business, you have a big capacity to do a lot of stuff. I didn't, when I got started, my capacity was like, I struggled to read a book, and then I read a book, and I was like, well, that book was awesome. My capacity expanded a little bit,

and it just more and expanded and more and expanded. Now, 15 years later, we're running a huge company. We're one of the top, probably two or three in the world's visit 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, let people in, but the reality is someone comes in on

a payment plan, they can't afford, they're trying to learn stuff and they can't afford it. And then, you know, then you 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, um, I want people to, um, to, to grow with us. All right. And so that's why we do stuff. So we have stuff, low ticket stuff, middle 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 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. I honestly actually do believe that,

which is why I don't just go and hard close everyone on these huge payment plans. I see a lot of people do product launches, and they're selling $2,000 course or 12 payments at $300. I'm like, 12 payments at $300? I remember being in those days, and that was like, that's a lot of money. It almost doesn't mean disservice. It's like, okay, if I had 12 payments of $300, 12 months from now, then I'll have my stuff in place and I can start buying ads again

because I have this huge budget of $300 a month. Anyway, so that's kind 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 will 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. 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 mean, I could tell you probably a couple dozen examples of this, but Dan Henders If I do that correctly, then they'll be able to afford the next thing and the next thing and the next thing. I could tell you probably a couple dozen examples of this, but Dan Henderson, my favorite, he joined a 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 like how cool is that if your customers feel like, man, I got so much from this, I feel like I owe you. Like I need to invest your higher ticket things because 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 it helps you. And 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 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? You give them something free and it increases the spark in their relationship or 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 you play. I love it. Appreciate you guys as customers, as friends, as subscribers, as listeners, and hope that you got some good ideas out of this. I'm going to get back to eating my Simtoe's Crunch before it all gets cold and soggy. It's a little soggy already, so I'm going to go. And by finally liking live, I hope it's 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. Would you like to see behind the scenes of what we're actually doing each day to grow our company? If so, then go subscribe to our free behind-the-scenes reality TV show at www.funnelhacker.tv.