In the credit repair industry, one of the most common questions is, “How much should I charge for my services?” or “What pricing model should I use?” In this article, we’ll explore various strategies that have worked for others in the industry.
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Legal Disclaimer:
We do not recommend any specific billing method. The Telemarketing Sales Rule (TSR) prohibits telemarketing credit repair companies from charging fees before 6 months after services are completed. However, if you don’t telemarket, you may be able to charge typical fees, as allowed by law. For more on the TSR, visit FTC’s guide.
Credit Repair Cloud’s statements are not legal advice—please consult a legal professional for compliance. All customers must comply with the TSR and relevant laws to use our software.
How much should I charge my clients?
There’s no single answer, as pricing can vary widely. However, many successful businesses focus on fair pricing, quality service, and creating happy clients who refer others.
How can I calculate potential earnings?
Run this Credit Repair Business ROI Calculator and run some pricing projections!
Recurring revenue
Recurring revenue can be a strong foundation for long-term financial growth. A credit repair operation typically requires minimal overhead, such as a computer, software, and a proven process. The recurring nature of this business model can make it easier to scale. A recurring revenue business is like a subscription, where your customer pays every month. Like a cable bill or your cell phone bill.
Here's the secret to recurring revenue:
If you keep your existing "paying" clients happy…
And you continue to add new clients each month…
Your revenue will increase every month!
Payment/pricing models for Credit Repair companies
There are two most commonly used payment models in the credit repair industry:
Monthly
Pay-Per-Delete
Monthly subscription model
Some businesses opt to charge a recurring monthly fee. Rates can range widely, with many businesses charging anywhere from $59 to $179 per month. An initial “first work fee” may be charged after setup, followed by a monthly fee after each month’s work is completed.
Pay-per-delete model
Another approach involves charging a fee for each successful deletion of negative items from a client’s credit report. This model often includes a setup fee and specific charges for each type of deletion.
Important Consideration:
With the Pay-Per-Delete model, the total fees can become substantial if many deletions are achieved. To avoid payment issues, it’s advisable to discuss payment plans with clients in advance and consider addressing items incrementally.
Viewing Pricing from the Client’s Perspective
When deciding on a billing model, consider it from the client’s perspective. Clients typically prefer a fee structure that is reasonable, affordable, and predictable. We encourage you to participate in discussions within our Facebook Community to see what has worked for others.
What you can do now: