ARR drives startup valuations. For example people might argue if you have $100M ARR the startup is worth 10x, so $1B.

Now that’s a pretty good incentive to drive up ARR, no matter how.

Welcome to the world of creative accounting!

One-time projects? Count as ARR! 3 months contract with no extension? Count as ARR! You gave a discount of 50% for the first year? Make sure to count the full price as ARR!