Attract customers with a heavily discounted first month or term. Simultaneously, charge a substantial one-time setup fee. This strategy liquidates acquisition costs and generates immediate cash flow while the discount drives initial interest, solving two problems at once.

For products with high trial churn, replace the standard "try before you buy" model. Instead, charge users upfront and offer a rebate or a free second month if they complete a key activation task. This creates commitment and incentivizes the exact behavior that leads to long-term retention.

Service businesses with delayed LTV can improve immediate cash flow by offering bundled, one-time services (e.g., setup, moving, supplies) at signup. Customers are less sensitive to these initial costs than to higher recurring fees.

To make annual contracts more compelling, introduce a substantial setup or integration fee in your pricing. Then, offer to waive this fee entirely if the customer signs a yearly agreement. This frames the decision around a significant, immediate saving, increasing commitment rates.

For high-ticket software or services, position a large setup fee as a standard part of the offer. Then, present an alternative: waive the entire fee if the client commits to a one-year contract. This creates a powerful incentive and gives the customer the illusion of choice, making the annual commitment feel like a significant win.

A significant one-time startup fee increases a customer's initial investment and creates a psychological barrier to leaving. This counterintuitive strategy can drastically reduce churn and increase lifetime value, as customers feel they have more to lose by canceling.

Instead of absorbing labor and commission costs, a service business can bundle them into customer-facing "bin" and "initiation" fees. This shifts the financial burden of acquisition to the new customer, allowing the business to collect enough cash upfront to cover all costs and become immediately cash-flow positive on each new sale.

Customers who pay a significant initiation fee are psychologically primed to stay longer to justify their initial investment, even if their monthly rate is lower. This "sunk cost fallacy" makes them a "stickier" customer than those on low-cost, no-commitment plans.

This attraction offer replaces free trials. Customers pay a significant amount upfront for a service. If they achieve a predefined goal, they get their money back, often as store credit for future services. This model dramatically improves initial cash flow and incentivizes customer success.