I was startled to see a big “We have layaway!” banner hanging across a consignment shop near my home. But if you’ve seen a Kmart ad lately you’ll know that layway is back in a big way with both the big box stores and smaller retailers.

You can even layaway online purchases for stores such as Gap and Apple now at Elayaway.com, which has seen membership spike 750% since January. They’re even trying to get doctors on board. While layaway may not be a good fit for your business, it does beg the question…

Research has shown offering more payment options increases sales–and the choppy economy makes it’s even more important to do now. So, if you don’t already, it’s time to think about taking credit cards. And if you do, then skip ahead to see how payment plans can boost your business.

Let Them Charge It

It’s really not as hard as you think. Yes, you’ll lose a portion of the payments to fees, so make sure you factor that into your pricing. But the increased sales will more than make up for it because clients like the convenience and “safety” of knowing they have some recourse through the credit card company if something goes awry.

Here are some easy ways to expand your payment horizons with credit cards:

Paypal. It’s fast and easy to get started, and clients can pay via your website or emailed invoices. You don’t need a merchant account or shopping cart to use Paypal. But typically it’s cheaper and more professional to use an online shopping cart once you start racking up the credit card sales.

Clickbank. If you’re just selling digital products (ebooks, audios, membership sites), Clickbank is another fairly fast and easy way to get started. It’s also a simple way to offer affiliate commissions so others will promote your products. Again, it’s a one-stop shop and you don’t need anything more than a website.

Merchant account. If you’re only selling services that require an individual estimate for each project, you could just get a merchant account and enter the client’s information online in a “virtual terminal.” The per-transaction fees are generally less than with Paypal. I chose Practice Pay Solutions because they’re well-known in the coaching community and almost exclusively work with businesses where the card is not physically present for swiping (aka a MOTO merchant).

Shopping cart. Generally, the best way to sell from your website is with a shopping cart (you’ll still need the merchant account though)–especially if you sell some combination of digital products, actual physical products and services with fixed prices. I went with a third-party cart, 1ShoppingCart (1SC), where the customer clicks and is transferred to the cart’s secure site for processing. There are a lot of rebranded versions of 1SC out there–I just figured you may as well go with the original.

Give ‘Em Time

Allowing clients to split one payment into several smaller ones can significantly boost your sales–for both the pay-it-all-now AND the payment plan options.

But people who can pay the full amount often prefer to pay in smaller chunks over time because it’s easier on the cash flow (and credit limit). And psychologically, they’re more comfortable with making three payments of $500 rather than $1500. That’s why infomercials and QVC have offered these options for years.

Choose the frequency and payment amounts based on what you’re selling and what tests well with your audience. If it’s a service or seminar they’re paying for, shoot for getting the final payment before you finish the project or the seminar takes place. With products, you should definitely test a multiple payment offer on anything priced $100 or more.

However you do it, making it easier and more convenient for clients to buy will be a win-win scenario for both of you!

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