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Expansion Revenue, with Kevin Daisey


Episode #1354

In this episode, Kevin shares what expansion revenue is and how you can do this to your clients.

October 19, 2022

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Episode Transcript

Kevin Daisey (00:01):
What is expansion revenue? What’s up everybody? This is Kevin Daisey. Today I wanna talk about expansion revenue, first off, what that is and how you can tap into it. So expansion revenue is kind of like an upsell, but they’re not the same thing. So you have an existing bank of clients or existing clients that you’re working with, upselling them on a new product or a new service that you just rolled out, or maybe as an existing service you have that they just don’t have that would be considered an upsell. You’re convincing them that, Hey, we’ve been doing these other things for you. It’s been about a year you’ve been working with us, and I really think you could use this other service. That would be an upsell if they agree to go with that service. Or maybe they for our case, Hey, your website’s three years old.
(01:00):
We’d really like to build you a new website. Here’s why you need it. And that might be a project. So that’s an upsell. But expansion revenue is really revenue that you can build from your customers as they expand. And so if you can build a process or a, a system where when they come on board with you as a client, you’re built and you have a system in place that where they, they move up as they grow. So the good good example would be like a sas, like a, a software. If you have, you know, one to five seats or one to five people cost this per month, once they hire and grow and now they have 10 people, they have to have more licenses. And so there’s, there’s different packages that automatically you upgrade to. We just did this with HubSpot. We actually just hit 2000 contacts for marketing and for emails, and we automatically have to go up to the next level.
(02:04):
It just says, Hey, you’re about to go up to the next tier, and we hit okay, and now we’re gonna get billed an extra, like two or $300 a month is because we’ve grown and now they’re gonna charge us more. So if you could come up with, you know, whatever you might do as a service or a business, if your client comes in at whatever size they are, but you’re helping them grow their business, say, say it’s coaching or marketing, what’s the next step? And so lay out your whole business to have these steps predefined. And so if I bringing a client right now and say, Hey you’re small we understand where you’re trying to go. We ask ’em about their goals, and we say, Hey, you know, there’s probably best to start with a website. Once we get the website done in six months from now, once the site’s been up for a couple months, we’re going to come back to you and, and you need to move into
Kevin Daisey (02:58):
Generating some content and starting some seo and maybe starting some advertising. But we, we paint the picture and we show them that there are steps and they want to hit those steps because that means they’ve grown and we’re, we’re taking them through this journey. They’re also not surprised when we say, Hey, it’s time to add seo. They already know. And we’ve almost like pre-prepared them in the beginning stage. And so that’s something that we’ve actually started to do and say, You, you might be here right now, but look at all these other things that you need to accomplish and we’re gonna help you go through each of those things. And so now the client’s wired to say, Okay, it’s been six months. You know, I got a couple new leads coming in. I’m, I’m, I can afford to do more. Let’s go up to the next step.
(03:49):
And so now we can help generate traffic for them and, and, and grow their business with organic seo. And that’s just one example. So think about your business and how you can do this with your clients. Again, you took, it took a lot of energy and probably money to get a customer. Why not be able to sell them more as they, you know, stay longer with you? So think about how you can do this in your business, but it’s expansion revenue. So it’s, it’s not as you expand, it’s as your customer or client expands, what more can you offer them and have it already laid out? So that’s no surprise. And it’s a nice smooth transition. You’re not trying to call and upsell them. You’re calling ’em to say, Hey, congratulations, you’ve hit six months. You’ve, you know, we’ve seen results, It’s time to go to the next step. So it’s almost like a congrats, like you’re, you’re graduating to the next stage. And this can be huge for your business as far as, you know, scaling your revenue without bringing on more clients.

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About The Hosts


  • Erik J. Olson is an award-winning digital marketer & entrepreneur. The Founder & CEO of Array Digital, he is also the host of the Journey to $100 Million Flash Briefing and daily podcast, and the organizer of the Marketers Anonymous monthly meetups.

  • Kevin Daisey is an award-winning digital marketer & entrepreneur. He started his first company when he was just 23, and is the Founder & CMO of Array Digital. Kevin is the also the co-host of the Journey to $100 Million Flash Briefing and daily podcast, and the co-organizer of the Marketers Anonymous monthly meetups.

Website Design, Search Engine Optimization (SEO), Online Advertising, Social Media & Digital Marketing.
© Array Digital LLC

Website Design, Online Advertising, SEO, Social Media & Digital Marketing.
© Array Digital LLC