Continuity Discount Offer System
Give products or services free if customers commit to buying more over time — the easiest sale anyone can close.
Give products or services away for free if the customer commits to buying more over time. Four ways to apply the discount: Up Front (free time first), At The End (earned after completing all payments), Spread Over Time (distributed equally across months), or After First 1-2 Payments (covers your costs first). The single highest-value tactical note in the book: bill every 4 weeks instead of monthly — 52/4 = 13 billing cycles vs 12 months, adding 8.3% revenue (41% profit on 20% margins). Also add a 3% processing fee for five extra words that adds 30% to profit on 10% margins.
- Bill every 4 weeks (not monthly) for 8.3% more annual revenue
- Add a 3% processing fee — nobody declines and it massively boosts profit
- Extend the term with discounts, never eat into it
- Get two forms of payment with a 3% discount for the second
- Use exit interviews — they save roughly a third of canceling customers
- Make cancellation fee equal to the discount received
- Choose When to Apply the DiscountPick from four options: Up Front (free time first — best for enforceable contracts), At The End (earned after completing payments — reward model), Spread Over Time (equal distribution — keeps cash flowing), or After First 1-2 Payments (covers your costs first, validates payment method).Pro tipSpreading the discount over time keeps cash flowing consistently while still giving the customer the full value of the promotion.WarningUp Front application delays cash and works best only in industries that enforce contracts (cell phones, storage, real estate).
- Switch to 4-Week BillingChange billing from monthly to every 4 weeks. 52 weeks / 4 = 13 billing cycles per year instead of 12. Same perceived price per cycle, but 8.3% more revenue annually. On 20% margins, this adds 41% to annual profit.Pro tipThe same number of people buy at the same price per cycle. Just change the words from 'monthly' to 'every 4 weeks.'
- Add the Processing FeeAdd 'plus a 3% processing fee' — five extra words that nobody declines. On a 10% margin business, this adds 30% to profit.Pro tipGet ACH if possible — it is the cheapest form of payment besides cash.
- Set Up Cancellation Policy and Exit InterviewsMake the cancellation fee equal to the total discount received. Ensure customers know HOW to cancel. Offer to waive the cancellation fee in exchange for an exit interview — this routinely saves a third of canceling customers.Pro tipTry a lifetime discount at your most common churn point. If average customer stays 4 months, offer the lifetime rate after month 4.WarningMake sure customers know how to cancel — unclear processes generate external complaints and reputation damage.
Offered one year of free service if customers committed to five years paid. Used credit cards to fund the free year upfront. Built locked-in recurring revenue.
Three pricing tiers: one-time purchase price, 5% off with subscription, and 15% off if you stayed for five consecutive months. The 15% rate was earned and kept for life.
A trash company used this approach to sell five-year contracts: one year free if you commit to five years paid. The owner used credit cards to fund the free year, then sold the business at a premium because of the locked-in revenue. Hormozi also observed a rice company using tiered discounts: one-time price, 5% off with subscription, and 15% off for five consecutive months of purchases.