Expansion Deal

An expansion deal, or an expansion agreement, refers to an arrangement where a brand’s existing customer agrees to acquire additional products beyond their initial purchase. This can take many forms, such as upgrading to a higher-tier version of the same product, buying new product lines, or extending the scope of an existing supply agreement.

The value of expansion deals is their ability to drive revenue growth without the acquisition costs associated with finding and nurturing new customers. They can be a significant source of growth for many business models.