4X Cheaper Revenue

4X Cheaper Revenue

Insight from Appcues

We’ve talked about spending money, let’s dig into making more of it. 

I don’t know about you, but I’m all about spending the least amount of money for the biggest payoff. 

That’s why I love expansion revenue.

It’s all about generating more income from customers you already have. Think upsells, cross-sells, and add ons.

It’s actually 4x cheaper to do this than to acquire a new customer. I’d rather sell existing customers new value-adds than hustle for new business any day.

So let’s crunch some numbers.

The quick math: add up revenue from upsells, cross-sells, and add ons at the beginning of the month. Do the same at the end of the month. 

Subtract the end-of-the-month number from the start-of-the-month number. That’s your Expansion MRR (monthly recurring revenue).

Expansion MRR = end of month expansion revenue – start of month expansion revenue

To find out if that number’s good, do this calculation to find your percentage:

Finmark says most Saas businesses consider 10-30% as good.

Where are you at?

Learn more: 30%+ of your revenue should be expansion revenue