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For many large carnivores, minimizing the financial burden they impose on local people is critical to their conservation. Incentive-based programs that provide people with financial benefits for taking pro-conservation actions or achieving conservation goals are a promising tool for promoting human?carnivore coexistence. Although the number of incentive-based programs aimed at conserving large carnivores is growing, there has been little published research on the use of this approach. We reviewed the design, implementation, and results of a novel lion conservation incentive payment (CIP) program piloted in Tanzania's Ngorongoro Conservation Area. Under the program, developed in collaboration with local stakeholders, villages earned direct payments based on the number of lions observed on their land each month. During the program's 3-year pilot period, villages earned more than double the value of livestock injured or killed by lions and used their earnings primarily to support education-related projects. A household survey conducted at the conclusion of the pilot indicated widespread awareness of and support for the CIP program. Lessons from this experience that may be valuable for the development of similar incentive-based conservation schemes in Tanzania and beyond include the importance of developing a practical and dynamic earnings framework, evaluating and adaptively managing program communications, supporting participating stakeholders to effectively deploy their CIP earnings, and identifying potential sources of sustainable funding.