Journey To $100 Million

In episode 270 of Journey to $100 Million, Erik discusses contracts, monthly recurring revenue, and the details that have helped us communicate our scope of work to clients. When we sign with someone at Array Digital, we put a lot of effort upfront into the client and engagement. That upfront cost is amortized over the minimum commitment duration of the contract. When a client cancels early, it’s a problem because we do not have the time we expected to earn the revenue to offset our upfront costs. As an example, every other web agency will charge an upfront fee of $5k - $20k or more to create a website. Not at Array Digital - we charge the same amount every month even when we’re putting a ton of work in at the beginning of the project. But, there’s a minimum number of months that we expect the client to stay with us. When a client breaks the contract, when they cancel before the minimum commitment is fulfilled, then, contractually, there will be liquidated damages. Instead of trying to figure out what tho