The Zero-Sum Fallacy: ARR vs. Services
OPEXEngine
DECEMBER 23, 2020
Some SaaS startups develop a form of zero-sum delusion early in their evolution, characterized by the following set of beliefs. Believing that: A customer has a fixed budget that is 100% fungible between ARR (annual revenue revenue) and services. It is in the company’s best interest to turn as much of the customer’s budget as possible into ARR. Customers never think to budget implementation services separately from annual software licensing.
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