Get Paid Up Front, Get Zero Churn

24 Oct 2026 · 1 min

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In this segment, Eric Deeran explains why collecting payment for the entire service period up front is advantageous for businesses. He outlines two main benefits: first, it allows a faster return on investment (ROI) for advertising spend because the full revenue is available immediately; second, it eliminates churn risk, as customers who have already paid for a multi‑month package cannot cancel without a refund. Deeran contrasts this with monthly billing, where clients may stop paying if early results are lacking, especially when the service’s outcomes take longer to materialize. He also notes that many software and subscription companies offer discounts for upfront payment precisely because it guarantees zero churn.

Chapters

So number one, you can ROI on ads faster. But number two, you don't have to worry about churn because if you can get— let's say you sell a 6-month package. If you can get all 6 months upfront, your churn is naturally going to be zero because they've already paid all upfront. Whereas if you charge someone on a monthly basis, let's say whatever it is, $5,000 a month on a monthly basis, but then they don't get a result within the first month or two and maybe it takes longer for you to get them results, well then they're not inclined to continue to pay you and they're probably going to cancel after a month or two if they're not getting the result that they want, right? So this is specifically if you have a longer time horizon for getting clients results, it's even more important then. But there's a reason that softwares and subscriptions and all of these companies, they give you a discount to pay upfront because they know their churn is going to be zero when they do that.