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.

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.

A 'free' or 'pay-what-you-want' offer creates enough goodwill to ask tough, confrontational questions upfront. This allows businesses to filter for genuinely committed long-term customers, turning a lead generation tool into a qualification test.

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.

For services requiring customer participation to be successful (e.g., coaching, setup processes), a one-time startup fee ensures commitment. This financial investment makes customers more likely to complete required tasks and pay attention, ultimately improving their results.

The marketing landscape evolves too quickly for long-term commitments. Locking into even a 12-month contract can trap you with an underperforming agency while wasting money. Insist on month-to-month agreements to retain flexibility and ensure the partnership remains effective and accountable.

For high-ticket services with delayed results like SEO, use a 'Waived Fee' offer. Present a large one-time setup fee plus a monthly retainer. Then, offer to waive the setup fee if the client commits to a longer term (e.g., 12 months), with an early-out clause if performance metrics aren't met in 90 days.

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.