Expansion Revenue
Also called Upsell Revenue
Additional recurring revenue from existing customers through upgrades, seats, or add-ons, rather than from new customers. The engine behind net revenue retention over 100 percent.
Why it matters
Expansion revenue is the cheapest growth there is, since you already won the customer. A product that naturally expands with a customer's usage is far easier to scale than one that must constantly win new logos.
For example
An existing 50,000-a-month customer adds ten seats and upgrades a tier, lifting them to 80,000, that extra 30,000 is expansion revenue.
Go deeper
Related terms
Also in Starting Up
See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.
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