Eric DeeranOne mission — help agency owners build businesses they actually love running.

Collect 50-60% Cash Up Front

4 Oct 2026 · 0 min

Watch on YouTube

0:24

In this excerpt, Eric Deeran critiques the common practice of collecting only about 13% of a contract’s value upfront. He argues that businesses should aim to collect 50–60% of the contract value at the start. This higher upfront cash flow provides sufficient capital to reinvest in advertising, enabling rapid scaling toward a target of $1 million in monthly revenue. Deeran emphasizes that without sufficient early profitability, companies must rely on future payments, which slows reinvestment and hampers growth.

So they're only collecting about 13% of contract value on the front end. We like to see 50 to 60% cash collected. That allows us to collect enough money to then put back into ads to continue to scale, right? So if this company wants to get to $1 million a month, we really need to be profitable on the first month working with them or that they're working with their clients, right? So that obviously, like I said, parks their profit in future payments and slows down how fast they can reinvest back into ads.