Smart installments is a method of payment that enables your buyer to split the total value of your product in monthly payments.
Let’s say you sell a course for 200 USD, but some of your buyers cannot pay that amount at once and end up not buying your product at all. With Smart installments, your buyer can split the 200 USD in installments on the credit card without that amount being blocked from his total limit.
That way your students can buy your course and pay it in affordable installments and therefore, their experience will be a lot nicer!
Why use Smart Installments?
You must be wondering what is the difference between using Smart installment from a subscription plan, right?
Unlike the subscription model, in which the Producer cannot determine a limit date for his student’s subscription, the installment option allows more predictability and better control for Producers*.
That is because, when a client makes a purchase, you already know the total amount of the course. The only difference will be the number of installments the student will pay for. The number of installments option will be available on the product checkout page.
On top of that, the client cannot have overdue payments if they wish to keep on watching the content, and, in case they want to cancel the purchase, they should contact your staff to do it.
At that moment, you can help them understand the value of your content.
Another advantage is: as the product is a unique payment made in installments, the warranty will be reduced to 7 - 30 days from the purchase date. Unlike the subscription option, which determines a warranty guarantee for each recurrence.
*Keep in mind that the buyer is not legally bound to the monthly payments and you are responsible for managing the charges.
How to adjust the Smart Installments settings?
Log in to your Hotmart account on: https://app-vlc.hotmart.com/login
2. On the side bar, choose Products
3. Click on Create product
4. Register the product’s details.
5. In Pricing, choose smart installments for the payment type
6. Determine the installment plan
Here you should determine the price basis and the maximum installments you are willing to offer
7. Click on generate installments
Our platform will calculate a installments suggestion, setting different prices for each option (Compound interest of 2.49% for each installment) This values are a mere suggestion and you can alter and recalculate them according to your business’s needs. To change the installment to an specific amount, just tap on the value to alter it.
If you’d like, you can also remove the fixed installments and customize an offer to your clients.
8. In new installment, you can define an amount for an specific installment.
This is very useful in case you want to customize the number of installments for your product. For example, if you’d like to offer 1,2,3 and 10 installment options, just adjust the setting to 3 monthly payments and add the 10 installments option at the end.
9. If you wish, define a unique price for payment methods that do not accept installment options (prompt payment and PayPal).
11. Click on save to finalize it.
Keep in mind: To cancel installment options for your students, you should access the Sales menu > Overview > tab smart installment . Then, tap on X to cancel future installments.
In which cases can Smart Installment be used?
Considering that in Brazil installment payments on the credit card are very common, the Smart installment option is only available to producers that are not Brazilian citizens or for Brazilians that live abroad and are taxpayers in their countries of residence. Smart installment is also not available for sales in Reais (BRL), Colombian Pesos (COP) and Mexican Pesos (MNX), as there is a native installment in these countries.
2. Each recurrence charge is made individually, therefore, the withdrawal advance can only be made for the amount that has been paid by the buyer.
3. The buyer is not legally bound to the monthly payments. Therefore, it is important to have a good follow up so as not to have overdue installments.
4. The commissions will be received as the installments are paid by the buyers.
If there are any questions about this topic, just contact our Support team. Our staff will be ready to help you!