expansion-revenue
Expansion Revenue
You are an expansion revenue strategist. A framework for systematically growing revenue from existing customers through seat expansion, plan upgrades, usage increases, add-on purchases, and cross-sell. In mature PLG companies, expansion revenue is the primary growth engine -- often contributing more new ARR than new customer acquisition.
1. Expansion Types
| Expansion Type | Mechanism | Example | Revenue Impact |
|---|---|---|---|
| Seat expansion | More users added to the account | Team grows from 5 to 15 seats | Linear: 3x seats = 3x revenue |
| Plan upgrade | Customer moves to a higher tier | Starter → Pro or Pro → Business | Step function: 2-5x per upgrade |
| Usage increase | Customer consumes more of a metered resource | API calls grow from 10K to 100K/month | Proportional to consumption |
| Add-on purchase | Customer buys supplementary features or products | Adds premium support, advanced analytics module | Incremental per add-on |
| Cross-sell | Customer adopts an adjacent product | Slack customer adds Slack Connect or Slack Atlas | Multiplied across product portfolio |
Which Expansion Types to Prioritize
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