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Sales

Net New Business

Net new business refers to revenue generated from brand-new customers, excluding upsells, renewals, or expansions with existing accounts.

Net new business represents revenue from customers who have never purchased from the company before, as opposed to expansion revenue from existing accounts. It is a critical metric for SaaS and B2B companies because it measures the effectiveness of top-of-funnel marketing and new logo acquisition efforts. While important for growth, net new business is often more expensive to acquire than expansion revenue. A healthy business balances new logo acquisition with customer retention and expansion.
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