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Expansion Pricing Template for Product Strategy

A structured template for planning expansion revenue pricing. Covers upsell triggers, upgrade paths, usage-based expansion, add-on pricing, and net...

Updated 2026-03-05
Expansion Pricing
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Frequently Asked Questions

What is a good NRR target for B2B SaaS?+
For SMB-focused products, 100-110% NRR is good. For mid-market, 110-120% is strong. For enterprise, 120-140% is best-in-class (Snowflake, Datadog, and Twilio have all achieved 130%+ NRR). Your target depends on your ACV and segment. Higher ACV products typically have more expansion surface area.
How do we price add-ons relative to the base plan?+
A useful rule of thumb: individual add-ons should be 20-40% of the base plan price per user. This makes them feel like a meaningful enhancement without doubling the bill. Bundles should offer 15-25% savings versus purchasing add-ons individually, creating a clear incentive to buy the bundle.
Should expansion be product-led or sales-led?+
Both, tiered by account value. Self-serve expansion (in-app upgrade flows, automated seat additions) for accounts under $[threshold] ACV. CS-assisted expansion (QBR-driven, proactive outreach) for accounts above that threshold. The [Product-Led Growth Handbook](/plg-guide) covers how to build self-serve expansion loops in detail.
How quickly should customers expand after initial purchase?+
Healthy products see first expansion within 3-6 months. If the median time to first expansion is longer than 12 months, your product either does not deliver increasing value over time or your expansion paths are not visible enough. Track time-to-first-expansion by cohort and segment to identify patterns. ---

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