Why Monthly Billing Backfires

23 Oct 2026 · 1 min
0:35

In this segment of his YouTube video, Eric Deeran critiques the common business focus on growing monthly recurring revenue (MRR). He argues that for result‑oriented services, monthly billing is unsustainable because once a client achieves the promised outcome, there is little incentive for them to continue paying each month. He likens this to paying for a book month after month after finishing it—once the value is extracted, continued payment makes no sense. Deeran advises entrepreneurs to shift to a higher upfront lump‑sum price for such offerings, ensuring they capture the full value of the result before the client no longer needs the service.

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