Definition
Additional recurring revenue earned from existing customers through upsells, cross-sells, or seat growth, rather than new customer acquisition.
Why it matters for growth
Expansion revenue is typically the cheapest revenue a company can generate, since it requires no new-customer marketing or sales spend.
Example
A company grows revenue 20% year over year with zero new logos, entirely from existing customers adding seats and upgrading tiers.
FAQ
- What is Expansion Revenue?
- Additional recurring revenue earned from existing customers through upsells, cross-sells, or seat growth, rather than new customer acquisition.
- Why does Expansion Revenue matter for growth?
- Expansion revenue is typically the cheapest revenue a company can generate, since it requires no new-customer marketing or sales spend.
- What is an example of Expansion Revenue?
- A company grows revenue 20% year over year with zero new logos, entirely from existing customers adding seats and upgrading tiers.