Definition
Expansion revenue is revenue from existing customers that comes from increased usage, additional seats, higher-tier plans, or cross-sold products.
Expansion in a PLG motion
In PLG, expansion is often driven by organic product usage: teams invite more teammates, integrate more data, or rely on your product in more workflows.
How to measure expansion revenue
You can measure expansion revenue by tracking net revenue retention (NRR), or by isolating revenue from upgrades, additional seats, and add-ons.
Healthy PLG businesses often have strong expansion that more than offsets any logo churn over time.