Shifting the culture of payment with sliding scales and no-penalty payment plans
I believe in the success of my business. I trust that this is the work I am meant to do. I am proud of my flexible nervous system.
…and then (cue the Alfred Hitchcock soundtrack) comes launch month
The trust, the tools, the regulation, the inner knowing - shaken. Another gut-wrenching cycle of anxiety. Yes. Even though I’ve been launching programs since 2011, I still get the launch jitters.
Let me translate what “jitters” sounds like in my head: “The work is good but no one is going to be able to afford it. It was good while it lasted, wasn’t it? This is just too weird. I definitely niched down too much. People aren’t going to want to invest in something this weird.”
In January of 2023, I launched Business Alchemist Mentorship and found myself sliding into that familiar jittery space again. This time though, something stopped me from reaching full panic mode.
This time, I felt the jitters but I also found myself asking “Is this REALLY necessary?”
As you know, nervous system regulation is one of the pillars of my work. Because of this, I can’t help but see how my own business runs through cycles of activation. On one hand, of course it does. I still operate within the exploitative and manipulative culture of capitalism. The system is running exactly as it’s meant to. The activation is by design. So the first thing I want to share in this blog, is a thought I’ve been digesting:
If you feel anxious, ungrounded and jittery when you launch, there is nothing wrong with you. What are the choices you can make here?
With this last launch, I found myself wondering… “Is this really how I want to participate just because this is how everyone else is running their businesses?”
This business continues to be a portal for me to step further into alignment with my inner work. In January, she told me, “Yeah, this is pretty activating. Whatcha wanna do about it?” She helped me see that it is MY responsibility to address and respond to each unnecessary activation point in a way that feels supportive to me and my community.
I identified two aspects of the coaching industry that feel the most activating for clients. Time pressure and prohibitive cost. As I hold the intention of weeding out unnecessary activation and moving towards a business that is in regulation, I use these tools:
1) “No Launch” Launches
Meaning…No more hard launches. No more open and shut enrollment days. Which eliminates the countdown clock. Which means that you get to enroll in aligned offerings at the time that it feels the most supportive. Big exhale, right?
2) No-Penalty Payment Plans
The industry standard for an offering with the option of monthly payment plans is to add a markup of 15-25%. The reasons usually cited for this practice are because:
It is inconvenient to keep track of payments on a monthly basis
It’s “better” for your business to get a big cash injection
If a client decides to pull out, there is no way to collect the remaining balance
A no-penalty payment plan allows for the client to choose the monthly payment plan without the markup. In other words, the client who chooses the monthly payment option pays the same amount as the client who chooses the one-time payment option.
I started using this practice in 2022 because:
It takes minimal work to set up an automated monthly subscription with my credit card processing service. Once the subscription is set up, I don’t have to think about it as the client’s card information is securely stored and charged automatically each month.
While it does feel nice to get a big cash injection, relying on it feels dysregulating. Instead, I responsibly budget my finances so I don’t need to rely on cash injections to keep the business running sustainably.
Client care is a top priority. If a client pulls out early before the completion of a program, I would have much bigger questions than “How do I collect the remaining balance?” I would instead want to understand why the offering no longer felt aligned or if I somehow provided service that was not up to the standards I had communicated.
Additionally:
15-25% is on par with interest rates that credit card companies charge. To me, it feels predatory to be adopting credit card interest rates.
Nervous system regulation is woven through every aspect of my business and practice. A client may choose the one-time payment option at some sacrifice to themselves to avoid the penalty. To me, this is an unnecessarily activating to the nervous system that can be entirely avoided.
3) Supportive Sliding Scale
Sliding scale options allow for a product to be purchased at different price points based on the financial circumstances of the client. Implementing a sliding scale for my group coaching programs, workshops and courses creates equitable access while still maintaining a reciprocal relationship with my community.
For certain offerings, you will have four options to choose from. You can peep the sliding scale for Business Alchemist Mentorship HERE and Conscious Marketing HERE.
This is another way of saying “I trust you”.
I trust that you know what your personal and business budget is. You are the only one who can honestly evaluate your financial situation to choose the investment that feels nervous-citing to you. I will always point you towards making the most aligned decision for yourself.
Because the sliding scale thrives on trust, I do not ask you to justify or validate your choice. There are limited spaces for the discounted options. Opting for a discounted price when you can truthfully afford the higher price limits access for others who truly need the gift of financial flexibility.
I am also saying “I care about your long-term financial well-being”.
I’ve heard horror stories of coaches advising their clients to take out a line of credit, go to unsafe family members for the money, or just believe that they’ll magically manifest the money somehow. This sets up a relational dynamic where practitioners are activating their clients to fawn to them.
No matter when/if you choose to work with me, no matter which tier you choose, you are an equal and valued member of the my community. I believe in reciprocal relationships which means that this is a community built on mutual respect and trust. With these two new policies, I am demonstrating that I respect you to make decisions without unnecessary pressure. I am placing the trust in your hands to help us build a more connected economy together.
I believe in us.
Big Hugs,
Kat Lee
Frequently Asked Questions
What are the tiers of your sliding scale?
I have 3-4 options for my sliding scale, depending on the offering. Here are my intentions and guidelines for each option:
1) The option that pays it forward
By choosing this price, clients contribute to a more equitable community by supporting program access for those who have less financial security. This also allows me as a practitioner to offer discounted options on the sliding scale without taking on the entirety of the financial burden myself.
2) The option that reflects the true price of the offering
Clients are asked to choose this if:
they have access to financial security, own property/vehicle, or have personal savings
they have expendable income and are able to pay for “wants” such as meals out, new outfits or coffee/tea at a cafe
they can afford an annual vacation or take time off with little to no financial burden
3) The option that supports community members who are building financial security
Clients are asked to choose this if:
they have access to steady income but are paying off debt or working to build savings
they have some stress about meeting basic needs such as food, shelter, medical care, child care, etc. but still regularly achieve them
making this investment means they might have to cut back on some “wants” such as meals out, new outfits, vacation or coffee/tea at a cafe
4) The option that supports community members who struggle to meet basic needs and paying for this offering would be a significant hardship.
Clients are asked to choose this if:
they frequently stress about meeting basic needs such as food, shelter, medical care, child care, etc. and don’t always achieve them
they have debt that affects their ability to meet basic needs
they have unstable housing or transportation
they qualify for government assistance
they have little to no expendable income and find it difficult to build up personal savings
Why do you outline a “profile” for each price option?
Each of us have a relationship to money that is nuanced and sometimes has nothing to do with financial security itself. I’ve been running businesses since 2007 and have experimented with different forms of sliding scale and discounts along the way. In doing this, I’ve had experiences of folks who qualified for the highest tier opting for the most discounted option. Instead of feeling resentful about this and taking away support completely, I decided that I need to take on the responsibility of being more clear about who each pricing tier is intended for. My hope is that by creating a loose “profile”, people will be able to accurately assess which option would be most appropriate for them.
Why do you not ask for income justification or verification?
I’ve been seeing a troubling trend towards romanticizing victimhood. Yes, I acknowledge that injustices and disparities exist. But I will never ask anyone to parade their tender story of struggle to receive something from me. Tender stories are not a commodity to be traded. We can unpack the challenges together at a pace that feels safe to you when we are in a container together. You will not be asked to share those stories prematurely while we are trying to decide if we’d like to enter into a practitioner-client relationship together.
Why do you not offer pricing options based on identity?
I recognize that there are communities that have been marginalized. However, I also believe each person is an individual carving out their unique story. An individual does not represent a monolith. The sole factor I ask folks to consider is their current financial situation because it is the only factor that we are equalizing.
Why I do not offer sliding scale options for 1:1 work
Working 1:1 with clients is a big energetic investment for me and the coaches on my team. I have not (yet?) found a way to scale 1:1 work in a way that feels sustainable and reciprocal.
When should I start offering sliding scale options for my own business?
I considered implementing a sliding scale 2 years ago but it would not have felt nourishing for me to make that shift at that time. Why? Because my business was just barely paying the bills. Wondering how much a client was going to be able to pay would have put me into scarcity and resentment pretty quickly. I’ve made this change now instead of 2 years ago because I have a full bank account, several vetted programs that people have signed up for time and time again and a big enough community to support this kind of change. The biggest thing to consider when making a change like this is : “Is this shift being made out of generosity and abundance? Or guilt? Or performance?”
Additional Resources:
My sliding scale model is inspired by the Green Bottle Model from Worts+Cunning.
Journal with Curiosity
Are there layers of unnecessary activation in your business? Is there a choice/change that you can make that would be supportive to both you and your community? Start the conversation by asking: How can I/my business INSPIRE nervous systems to take action instead of FORCING them to?
I’d love to hear what this sparks for you. Shoot me an email at hello@kathosoolee.com or DM me on Instagram @kat.hosoo.lee to share your reflections.