[GTM glossary](/glossary.md) Net new business Sales # Net new business In short Net new business is revenue from customers who have not bought from your company before. It excludes renewals, upsells, cross-sells, and any other growth from existing accounts. Sales teams track it separately because winning a new customer takes different skills, longer cycles, and higher acquisition cost than growing an account you already hold. Many quotas and compensation plans are built around it. ## What counts and what does not * **Counts:** A first contract with a company that has no prior paid relationship with you. * **Does not count:** Renewals, seat additions, upgrades, and add-on products sold to current customers. * **Gray area:** A new business unit or subsidiary of an existing customer. Define your rule in writing so reps and finance agree. --- ## Why teams track it separately New business shows whether you are growing your customer base, not only deepening it. A company can hit its revenue target through expansion while its pipeline of new customers quietly dries up. It also exposes the true cost of acquisition. Outbound prospecting, marketing campaigns, and longer sales cycles all concentrate here. --- ## How teams generate net new business ### Define who to target Start with an ideal customer profile and a target account list, so effort goes to companies that fit and have not bought. ### Combine outbound and inbound Outbound prospecting reaches accounts that are not looking yet. Inbound captures buyers already searching. Most teams need both. ### Time outreach with signals Events such as new funding, a leadership change, or a hiring push can open a buying window and make cold outreach more relevant. --- ## Example Say a rep has a quarterly target of closing ten new customers. The rep also owns renewals for six existing accounts. Only the ten first-time customers count as net new business; the renewals sit in a separate target. --- ## Common mistakes * **Mixing it with expansion:** Blended numbers hide weak customer acquisition. * **Unclear ownership:** Disputes between hunters and account managers over who owns a new buying group slow deals. * **Chasing any logo:** Customers outside your ICP often churn, which erases the gain. --- ## Net new business FAQs **What is net new business?** Net new business is revenue from customers who have never purchased from your company before. It excludes renewals, upsells, cross-sells, and any other revenue growth that comes from customers you already have. **What is the difference between net new business and existing business?** Net new business comes from first-time customers, usually through prospecting and longer sales cycles. Existing business comes from current customers through renewals, upsells, and expansion, which typically involves a shorter cycle and an established relationship. **How do you measure net new business?** Track closed-won revenue from accounts with no prior paid history, separate from renewals and expansion. Common views include count of new customers, new annual contract value, and the share of total bookings that comes from new customers. Share term --- ## More related phrases * [Monthly recurring revenue](/glossary/monthly-recurring-revenue.md) * [Net new ARR](/glossary/net-new-arr.md) * [Business development](/glossary/business-development.md) ## Similar phrases * [New logo](/glossary/new-logo.md) A new logo is a customer that signs with your company for the first time, counted as one new account regardless of how large the first contract is. * [Closed won](/glossary/closed-won.md) Closed won is the CRM stage for an opportunity where the buyer agreed to purchase and signed, which turns the deal into booked revenue. * [Upselling](/glossary/upselling.md) Upselling is the practice of persuading an existing customer to buy a higher-tier, larger, or more capable version of what they already use or are buying. * [Account expansion](/glossary/account-expansion.md) Account expansion is the work of growing revenue from existing customers by adding users, teams, products, or regions, rather than finding new logos. * [Sales pipeline](/glossary/sales-pipeline.md) A sales pipeline is a visual, stage-by-stage view of every open deal, showing where prospects stand and how much revenue your team can expect to close.