Land and Expand
Definition
Land and expand is a sales strategy where you start with a small deal, then grow revenue over time through upsells and cross-sells within the same account.
What Is Land and Expand? Sales Strategy and Examples
Example: Sell 5 seats to one team for $500/month. After they see value, expand to 50 seats across the company for $5k/month. Benefits: easier to close small initial deals, expansion revenue has lower CAC, net revenue retention above 100%. Works best for products with clear expansion paths: more seats, more features, more usage, more teams.
Examples
A sales team closes an initial deal for 5 seats at $500 a month with one team inside a company. After that team sees value, the vendor expands the account to 50 seats across the company at $5,000 a month, a tenfold increase in revenue from the same customer without a new sales cycle.