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  "documentTitle": "The Ultimate Guide To ARR",
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  "notes": "This slide provides a framework for ARR calculation logic regarding discount treatment.",
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      "kind": "list",
      "text": "What to consider: Do you handle discounts applied in perpetuity (forever) on a fixed dollar or percentage-off basis? We see many of these in custom pricing plans offered to early/legacy customers or those with “friends and family” type coupons.",
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      "text": "What we recommend: This one’s pretty straightforward. You should always remove these from your ARR calculation because they happen on a recurring basis, like the revenue you’re annualizing.",
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      "text": "What to consider: Discounts with a fixed start and end date are more open to interpretation because they’re recurring but only for a certain amount of time, e.g., 1, 3, 6, or 12 months. Common sources of these discounts are marketing promotions (e.g., three months free if you use",
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      "text": "That’s why adjusting for discounts in the ARR Build is important. However, not all discounts are created equally. There’s nuance in determining which should be removed and which can be ignored. Let’s explore the differences based on the discount window.",
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      "kind": "paragraph",
      "text": "ARR, but that can be solved by having a systematic way to bridge the two numbers. Just make it absolutely clear from leadership down to individual sales reps how the two differ. In cases where you want to drive better alignment, you can create incentives for sellers to pull forward contract start dates.",
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      "kind": "paragraph",
      "text": "In creating the logic for ARR reporting, it’s better to err on the side of conservatism. Reporting a higher number than you might get credit for by investors or the public market is a bad trade in the risk-reward spectrum.",
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      "text": "RECURRING DISCOUNTS",
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      "text": "FIXED-TERM DISCOUNTS",
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