3 ms·
What are some of the shenanigans to juice ARR? I can think of a few; 1) make 2 year contracts cost the same as 1 year contracts (so you're lowering the price b
by jrockway 4y ago
What are some of the shenanigans to juice ARR?
I can think of a few; 1) make 2 year contracts cost the same as 1 year contracts (so you're lowering the price by 50% but get the number you want for your report today); 2) give incentives equal to the value of the contract (our software costs $30k but we'll give you $30k of AWS credits).
Anything else to watch out for?
- kolbe 4y agoTwo companies pay each other absurd amounts of money for their (nearly) zero marginal cost services, netting no money transferred, but loads of recurring revenue for each. Your #2 hint at this, but paying more than lifetime value of a customer to acquire the customer.