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  1. A Change of Season
    Devshed Loyal (3000 - 3499 posts)

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    Digital items access payment installment models


    Hi

    I got a question about digital items access payment installment models.

    Please note this is NOT a recurring billing or monthly membership.

    Let's say the item is $997 but they choose to pay 3 payments of $397.

    We drip the content in the course of 1 year.

    What do you do when a customer cancels payment installment on 2nd or 3rd bill?

    Will you still allow them to access the site? Maybe partially?

    I mean they have paid + 600 and now cancelled.

    Would NOT be fair to treat them as a monthly subscription membership you know?

    What would be the right thing to do?

    Thanks
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  3. Wiser? Not exactly.
    Devshed God 2nd Plane (6000 - 6499 posts)

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    This is entirely a business policy question and something that you/your client has to determine. I'd say it depends on what exactly they are paying for on whether or not they would continue to have access to it.

    Generally speaking I think if it's something with a fixed price and not some sort of recurring membership thing then the answer is probably yes, they should be able to continue using what they have paid for. In such a case you'd have to decide what 2 out of 3 payments qualifies for. The simple way would be to just break the whole package up into 3 separate sub packages. The first payment unlocks sub-package 1, the second sub-package 2 and the third sub-package 3.

    For example if the price was for a 12-video course teaching some topic, the first payment would open up videos 1-4, the second 5-8, and the last 9-12.

    Like I said though, the "correct" answer is however you/your client wants to run their business. If you wanna cut someone off completely for non-payment, feel free to do something.
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    Devshed Supreme Being (6500+ posts)

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    Sounds like a "recurring billing or monthly membership" except it cancels itself automatically after a few months.
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    Devshed Loyal (3000 - 3499 posts)

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    From marketing forums I get this
    Think about it like a car payment system. If someone stops paying their car payment, the whole car gets repossessed, not just part of it. And there is no refund of payments made. As long as you stick to your promise, we will too and you'll get everything you've been promised.
    If you chose the installment payment plan and cancel before making all the agreed payments, your access to the site will be terminated. For example payment installment for Platinum package. When you select this package, you agree to pay for access to content via 3 payments of $397. If payments stop on the second cycle, for example, your access stops as well. We agree to deliver amazing content and you agree to pay the installments.
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  9. Wiser? Not exactly.
    Devshed God 2nd Plane (6000 - 6499 posts)

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    Originally Posted by English Breakfast Tea
    From marketing forums I get this
    The first one is a poor comparison. A car is a physical item that cannot be easily split. If someone stops paying half-way you can't just let them keep half a car. They've also received the full benefit of the car (and made it worth less) while they were using it, so a refund of previous payments is silly.

    The second one seems to also be premised on the all or nothing fact. From the moment of the first payment one gains access to everything, then looses access when they stop paying. This is generally something that would fall under a subscription plan and should be marketed as such imo. So instead of say something like "Just three easy payments of $x/month" you'd instead just say "Full access for only $y/month". It also implies that there will continue to be new content added over time that they would also have access to immediately.

    Like I said before, you can do whatever you want. When your content is digital, easily divided, and marketed as a fixed price (regardless of whether that's all-up-front or via payments) I think it makes more sense to let the user continue to access what they've paid for and just restrict access to what they haven't.
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