Cash in exchange for goods. Everybody around the globe understands that. It’s a good thing. So why mess with something that’s established and works well?

1. To cater to individual situations

When I first conceived the idea for TechBasedTraining – a resource for freelancers to develop technical skills – I knew from experience our followers have skill levels that are all over the board. Some are more technically adept, others are brand new and then there were those who knew just enough to be dangerous.

There was no way a traditional membership would work. I’d either bore the skillful members to death or leave beginners in the dust. The solution was to sell points instead of a set of materials monthly. Every month, members would get points that spend like cash and can be redeemed for course access. This way, members get the exact product they want or need and we get to implement a recurring membership product.

2. Affordability

When we implemented the points for a monthly payment program, I decided to be very generous and not expire the points. I thought this was only fair since I hated having my points expire at other businesses. Besides, they are paid for with solid cash.

Once, a member confessed to me that she couldn’t afford the higher priced courses for the lump sum payment. This was why she opted for the membership because it allowed her to accumulate points so she can get the course a few month’s down the road.

In a sense, this customer was using the membership as a piggy bank and she was merely saving enough to buy what she really wanted. We haven’t used that as a selling point but you could market the points membership as a way to save up for your product without having to rely on credit cards. If possible, you could also break your product down into chunks so people can get portions of it using the points they already have.

3. Money Up Front

The flip side of affordability is you get the money up front. A lot of times, people will let points accumulate and go into a buying frenzy once they have lots of points. It doesn’t really matter when they redeem it because they have already paid you. It’s a fair trade because they still get what they want. In our case, they even get it at a discount because each point spends like a dollar but members pay less than that.

There are of course a few things you have to watch out for. We realized quickly that a points system can be confusing and that could hurt conversions. So you have to explain it well, make it simple or dress them up creatively. One of my clients likes to call her points ‘bucks’ and she goes on to use her ‘bucks’ as rewards and bonuses to drive sales for new products or promotions.

The other thing you need is a good sized inventory. It doesn’t have to be huge but a points system thrives on a medium to large catalog. If you only have one or two products, it won’t work.

I certainly don’t have all the answers. There are still lots of things I’d like to implement, improve and add. Overall, I’m glad we implemented a different way of selling because the points system is very versatile and can easily be used to upsell or cross sell product lines. The beauty of it is, you can implement this on already existing products. No need to create new ones. If your product fits, perhaps you too could try it out.

~Lynette

Lynette Chandler is a marketer with a gift for helping entrepreneurs interpret and apply technology in their business. Get in touch with her if you’d like to explore the points system for your business or simply learn more from Lynette at http://TechBasedMarketing.com