One embodiment of the present invention provides a system for using retail authorization to reduce the initial value of a software product. During operation, the system receives an initial bill for an un-activated version of the software product. Because this un-activated version is not fully functional, it has a lower value than a functional version of the software product, and hence the initial bill charges for a lower initial cost. During the sale of an un-activated version of the software product, the system activates the un-activated version from a point of sale system. After the sale, the system receives an additional bill for activating the software product.