Businesses often try to get customers to commit as early as possible. Annual contracts and long-term agreements create predictable revenue, but they can also make customers hesitate before they have experienced the product or service.
Carly Holm took the opposite approach when she launched Humani HR. Instead of requiring clients to sign year-long contracts, Humani allowed customers to work with the company month to month. They could use the service when they needed it and leave whenever they wanted.
That made Humani easier to try, particularly for smaller businesses that needed HR support but weren’t sure how much they would need. Humani’s growth shows how removing a commitment barrier can become a competitive advantage.
Remove the Risk From Saying Yes
For a small business, bringing in an outside HR company can be a significant commitment. A company might know it needs HR expertise, but it may not know exactly how much support it will need six or twelve months from now.
That makes a long-term contract a difficult decision. Customers have to commit to the service before they know whether it will actually provide enough value.
Holm was encouraged to use long-term contracts when she started Humani, but she chose not to. Instead, customers could work with Humani month to month.
That changed what a potential customer had to decide. Rather than asking, “Do I want to commit to this company for an entire year?” the customer could ask, “Do I want to try this?”
That is a much smaller decision. For founders, this is an important distinction. Sometimes customers aren’t rejecting the product. They are rejecting the risk that comes with buying it.
Let the Service Earn the Commitment
Removing the contract didn’t mean Humani could ignore retention. It actually created more pressure to provide a valuable service.
Without a long-term agreement keeping customers in place, Humani has to continually give them a reason to stay. Holm has described the model as having to re-earn every client every month.
That creates an important difference between customer retention and customer lock-in. A contract can make it harder for someone to leave, but a valuable service gives them a reason to stay.
Humani’s model puts that idea into practice. Customers can scale their use of the service based on what they actually need instead of committing to a fixed amount of support for an entire year.
For a service business, that flexibility can make the first purchase easier while creating more pressure for the company to deliver a good experience.
Make Flexibility Part of the Advantage
Humani’s approach created more uncertainty for the company. If customers could leave at any time, there was no guarantee that today’s customer would still be a customer next year.
But that became part of the company’s value proposition. Humani could make the initial decision easier because customers didn’t have to take on a major commitment before experiencing the service.
According to Inc., Humani now serves more than 650 clients and projects approximately $10.5 million in U.S. revenue for 2026.
The broader lesson applies beyond HR. When customers hesitate to buy, the problem may not be your product. It may be the commitment attached to it.
Could customers start with a smaller plan? Could they try the service before signing a long-term contract? Could they pay based on how much they actually use?
Sometimes making the decision smaller is more effective than trying to make the sales pitch bigger.
Takeaway
Humani HR shows how removing a barrier to leaving can make it easier for customers to start.
Holm didn’t try to eliminate customer uncertainty. She reduced the consequences of that uncertainty and gave Humani the opportunity to prove its value.
For founders, the lesson is simple: identify the biggest commitment standing between your customer and a purchase, then ask whether you actually need it.
You don’t have to remove every barrier. But if you can make saying yes easier while still delivering enough value to make customers want to stay, that flexibility can become a competitive advantage.
