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Expansion Revenue

Additional revenue from existing customers through upsells and cross-sells.

Expansion Revenue is the additional revenue generated from existing customers through upgrades, add-ons, and increased usage. It's more profitable than new customer acquisition and is key to achieving NRR above 100%.

Formula

Expansion MRR = Upsell MRR + Cross-sell MRR + Usage Increase MRR

Tips

  • Design pricing for natural expansion
  • Track expansion by customer segment
  • Expansion has near-zero CAC

Related Terms

NRRMRRLAND AND EXPANDLTVARPU

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expansion revenue definition, expansion mrr, upsell revenue, cross sell revenue