What does land and expand mean, and does it apply to my company?
Land and expand means you deliberately sell a small first deal to one team, prove it works, and grow from there into more seats, more teams or more products. It applies if your product can deliver real value to a single team on its own and if the natural buying unit inside your customer is a department rather than the whole company. It does not apply if the product only works once the whole organisation is on it, in which case a small land just produces a stalled pilot. The economics only work when the expansion actually happens, so decide up front what the second and third purchases are.
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5 resources, 1 India-specific, 5 link-checked.
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Accel's argument that expansion revenue is the specific thing that carries a company past $50M ARR, with the Twilio and Shopify revenue-mix numbers to show what it looks like when it works.
The cleanest definition of expansion MRR with the formula and the benchmark that matters: top companies get up to 40 percent of new ARR from existing customers.
The Gainsight CEO on why CS should own an NDR number rather than just a churn number, including the idea of giving every CSM their own book of MRR to grow from 100 to 115.
The benchmark study everyone quotes: good and great net revenue retention by business type, built from 20 growth experts plus real public company numbers. It stops the 'is 105 percent good' argument in one page.
A founder explaining land and expand as he ran it, including how small the first land was and what earned the right to grow inside the account. Better than a definition for deciding whether the motion fits your product.
