Smart Installments is a method of payment that enables your buyer to split the total value of your product into monthly payments.
Let's say you sell a $200.00 course, but some of your Buyers cannot commit to paying that amount all at once and end up not buying your product.
With the Smart Installments option, your Buyer will be able to pay in installments, dividing the amount of $200 into monthly installments that will be charged to their credit card.
This way, your student can acquire the course with the number of installments that fit their budget and their chances of conversion significantly increase.
What is the difference between a Subscription Plan and Smart Installments?
A Subscription Plan, unlike a Smart Installment Plan, allows a person to end their subscription.
Imagine that someone subscribed monthly to a product that offers exercise classes, but after 3 months, they achieved the weight loss results they wanted and stopped consuming the content. The subscriber then chooses to cancel the subscription and stop having access to that content.
Smart Installments, on the other hand, is just a way to pay for a product in monthly installments, in case the person does not want to or can’t pay the total amount at once. In this model, the person agrees to pay for the product regardless of its use.*
Because of this, another important difference between a Subscription Plan and Smart Installments is the guarantee period. For a subscription, each installment has its respective guarantee period. Smart Installments has a warranty term linked to the product purchase date.
* Important: Remember that the Buyer is not legally bound to the installments and you must manage the charges, assuming the burden of possible default
How to set up Smart Installments
You can set up Smart Installments for new and existing products. Please follow the step-by-step instructions:
- Access your Hotmart account through the link: https://app-vlc.hotmart.com/login
- In the side menu, choose Products > I’m a creator.
- Select the Product for which you want to activate Smart Installments.
- In Pricing and Offers, click "New offer" and then fill in the requested information.
- Select "Customized installment payment" as Payment Method.
Customize the Installment Plan
In this step, you must define the base price and the maximum number of installments you want to offer to your customers.
Click on Generate Installments
Our platform will calculate a payment suggestion, placing a different price for each installment (with a compound interest of 2.49% for each installment).
These values are suggestions, and you can change and recalculate them to best fit your business model.
To change the established value of a specific plan, just click on the value and change it. It isn’t possible to change the value of just one installment, only what the value of all of the installments in the plan.
If you want, you can also remove options from installment plans and customize the offers for your customers.
In New Installment, you can add new installment options.
This is very useful if you want to customize the number of installments for your product.
For example, if you want to have 1, 2, 3, or 10 installments as options for your course, just configure the installment plan for up to 3 payments and add the option of 10 installments at the end.
- You should also set a price for payment methods that do not allow an installment plan (PayPal, payment with 2 credit cards, one-time payments, bank transfers).
- Click Save to finish.
What are the conditions for Smart Installments to be used?
- The Smart Installments option is not available for sales in Reais (BRL), Colombian Pesos (COP), and Mexican Pesos (MNX). For these currencies, you can offer the native installment payment, which uses the Buyer's credit card limit and allows you to receive the full value of the product, without the risk of default.
- The charge for each recurrence is carried out in isolation and, therefore, the advance of withdrawals can only be carried out for the amounts already paid by the Buyer.
- The Buyer is not legally bound to the installments. It’s important that you monitor payments so that defaults do not occur.
- Commissions will be received as the Buyer makes payments.
If there are any questions regarding this topic, just contact our Customer Support with the subject Smart Installments. Our team is here to assist you.