Expansion Revenue

Additional revenue generated from existing customers through upgrades, add-ons, seat expansion, or usage overages rather than from acquiring new customers.

Expansion revenue is the most capital efficient growth lever available. Selling to existing customers costs 5 to 7 times less than acquiring new ones. It is also the primary driver of NRR above 100%.

A SaaS company starts a customer on the Starter plan at £49 per month. After 3 months the team grows and they upgrade to Business at £149 per month. That £100 increase is expansion revenue.