Put money on it
A commitment contract means putting something you care about, usually money, on the line if you don't follow through. In a 2010 study in the Philippines, smokers who put their own money into a savings account they'd lose if they failed a surprise nicotine test were more likely to pass it six months later, and the effect still showed a year out. Real stakes make "I'll do it later" a lot more expensive.
Have you ever noticed you'll cancel on yourself in a heartbeat, but you'll move mountains not to waste money? You'll skip the workout you planned at home. But the class you prepaid for? You're there, even if you're dragging.
That's just how people work. And you can use it on purpose.
What the research says
In 2010, economists Xavier Giné, Dean Karlan, and Jonathan Zinman offered smokers in the Philippines a savings account called CARES. Here's how it worked. You put your own money in for six months. At the end, you took a surprise urine test for nicotine. Pass, and you got your money back. Fail, and it went to charity.
Only about 11% of the people offered the account signed up. But the group that was offered it was more likely to pass the nicotine test at six months than a comparison group. And when the researchers did another surprise test at twelve months, after the money was off the table, the difference was still there.
The money didn't make anyone want to quit more. It just made quitting the easier choice in the moment when it counted.
So why does this work? When you set a goal, future you is all in. Then present you shows up, tired, with a full inbox, and future you isn't around to argue.
A commitment contract is future you leaving a note that says, "If you skip this, it's going to cost you." It changes the math right when you're about to talk yourself out of it.
What it looks like in a small business
I've watched clients use this in ways that are honestly kind of brilliant.
One gave a friend a check and said, "If I don't send five sales emails a week for a month, cash it." She sent every single one.
Another booked and paid for a photographer before her website copy was done. She had three weeks and a deposit she wasn't getting back. The copy got written.
It doesn't always have to be money. Booking the launch date, telling a client when to expect something, or scheduling the event before the content is ready all work the same way. You're making the cost of not doing it real.
How to set one up
Pick one specific goal. "Send five follow-up emails a week," not "grow my business."
Choose a stake that stings. It should hurt a little to lose. For some people that's $50. For others it's $500.
Pick a referee. Someone who will actually check and actually collect. Not your mom. She'll let it slide.
Set the deadline and the check-in. When do you report, and what counts as done?
Keep it short. A month is great. You can always sign up again.
Notice what this isn't. It's not announcing your goal to everyone on Facebook. As I wrote in Stop announcing your goals, telling the world can actually make you less likely to follow through. A commitment contract is private, specific, and costs you something.
A word of caution
Most people in that study didn't sign up, and that's worth paying attention to. Commitment devices only work if you're willing to use them, and they backfire if you set the bar so high you lose the money in week one and quit.
Start with a goal you can actually hit. Win the first one. Then raise the stakes.
And be skeptical of big promises about accountability in general. Some of the most-quoted numbers don't hold up, which I dug into in the accountability study everyone quotes.
Paying for coaching works the same way for a lot of my clients. If you want that kind of weekly commitment, let's talk.
Frequently asked questions
What is a commitment contract?
A commitment contract is an agreement where you put something you value, often money, at stake if you don't follow through on a goal, with someone else checking.
Do commitment devices really work?
In a 2010 study by Giné, Karlan, and Zinman, smokers offered a commitment savings account were more likely to pass surprise nicotine tests at six and twelve months. Only a minority chose to use it, though.
How much money should I put on the line?
Enough that losing it would sting, but not so much that one bad week sinks you. Start small with a goal you can realistically hit, then increase the stakes.
Sources: Giné, X., Karlan, D., & Zinman, J. (2010). Put your money where your butt is: A commitment contract for smoking cessation. American Economic Journal: Applied Economics, 2(4), 213–235.
