In my games if your character dies you have to pay a forfit, I assume its the same in most DM's games.
It started out as they had to go and make the coffee's while the rest of us continued playing, seemed sensible since it's not like they were involved in the game anymore.
Its since progressed so that they have to go to the fish and chip shop and buy a sausage dinner for everyone, but with all the total party kills I started to put on weight.
So now they just have to pay cash, as DM I get the lion's share this goes toward covering the costs of a fresh character sheet, minature, and the hassle of working them into the senario. The other players get to loot the corpse IC and a couple of quid OOC as a bribe not to assume the players new character is a doppleganger or enemy agent and kill them onsite.
Of course with TPK's we wave the fees to other players and call it even but as a DM I make a tidy sum, each time. Funny either my players are getting careless or my dungeons have got dealier since we introduced this rule.