Incremental revenue refers to the additional revenue generated as a direct result of a specific campaign, promotion, or sales activity, beyond what you would have earned without it. It helps measure the true impact of marketing and sales efforts on revenue growth.

Common sources of incremental revenue include:

• Paid advertising or outbound campaigns
• Product launches or upsell offers
• Entering new customer segments
• Seasonal or limited-time promotions

Formula:

Incremental revenue = Revenue after initiative – Baseline revenue*

*Baseline revenue = Average revenue without the initiative

Example:

The company typically makes $50,000/month. After launching a LinkedIn ads campaign, it earns $70,000.

Incremental revenue= $70,000 – $50,000 = $20,000