[GTM glossary](/glossary.md) New logo Sales # New logo Also known as: new logos In short A new logo is a company that becomes a customer of yours for the first time. The term comes from the idea of adding another company logo to your customer list. Teams count new logos as a measure of customer acquisition. It is a count of accounts, so a small first deal and a large first deal each add one logo. ## How new logos are used New logo targets appear in sales quotas, board reports, and marketing goals. They answer a question revenue alone cannot: how many new companies chose us this period? * **Quota metric:** Reps may carry a target for the number of new logos in addition to a revenue target. * **Growth indicator:** A rising logo count shows market reach; a flat one with rising revenue means growth is coming from existing accounts. * **Segment tracking:** Counting logos by industry or size shows whether you are winning inside your ICP. --- ## New logo vs. expansion A new logo is a first-time customer. Expansion is additional revenue from a customer you already have. Both grow revenue, but they depend on different motions: prospecting for the first, account management for the second. --- ## Defining a new logo clearly Edge cases cause arguments, so write the rules down. * **Returning customers:** Decide whether a customer who churned and came back counts as new after a set period, such as twelve months. * **Subsidiaries:** Decide whether a new division of a current customer counts as a separate logo. * **Pilots:** Decide whether a free or paid trial counts at signing or only when it converts to a contract. --- ## Example Say a team closes four deals in a quarter: two first-time customers, one renewal, and one upsell. It has added two new logos. Revenue from the other two deals counts as retention and expansion. --- ## Common mistakes * **Optimizing for count:** Chasing small logos can drain support and raise churn. * **Ignoring quality:** Track retention of new logos, not only how many you win. * **Inconsistent definitions:** If sales and finance count differently, reports will never match. --- ## New logo FAQs **What is a new logo in sales?** A new logo is a company that becomes a paying customer for the first time. Sales teams count new logos to measure customer acquisition, separate from renewals and growth within existing accounts. **What is the difference between a new logo and net new business?** A new logo is a count of first-time customers, while net new business is the revenue those customers bring. One new logo can bring a small or large amount of net new business depending on the size of the first contract. **Does a returning customer count as a new logo?** It depends on your internal rule. Many teams count a churned customer as a new logo only after a set period without a contract, such as twelve months. Whatever you choose, document it so sales and finance report consistently. Share term --- ## More related phrases * [Quota](/glossary/quota.md) * [Expansion ARR](/glossary/expansion-arr.md) * [Growth pathways](/glossary/growth-pathways.md) ## Similar phrases * [Net new business](/glossary/net-new-business.md) Net new business is revenue from customers who have never bought from you before, as opposed to renewals, upsells, or expansion from existing accounts. * [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. * [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. * [Logo churn](/glossary/logo-churn.md) Logo churn is the percentage of customers, counted by account rather than revenue, that cancel or do not renew during a given period. * [Logo retention](/glossary/logo-retention.md) Logo retention is the percentage of customers, counted by account rather than revenue, that you keep over a period. It is the inverse of logo churn.