10 deals of $10,000 at a 25% win rate
- Open deals
- 10
- Average deal size
- 10000
- Win rate
- 25
- Revenue target for the period
- 25000
- Average sales cycle
- 30
Result Expected (weighted) revenue: $25,000
Total pipeline value: $100,000
Pipeline coverage (x target): 4
Coverage your win rate needs: 4
Target covered by expected revenue: 100%
Pipeline needed for the target: $100,000
Pipeline still to build: $0
Open deals needed: 10
Deals expected to close: 2.5
Expected revenue per month: $25,365
- Pipeline value = 10 deals x 10000 = 100000
- Expected revenue = 100000 x 25% = 25000
- Coverage = 100000 / 25000 = 4x (needed: 1 / 25% = 4x)
- Pipeline required = 25000 / 25% = 100000, or 10 deals
- Monthly run rate = 25000 x 30.44 / 30 days = 25364.58
A $100,000 pipeline weighted at 25% is worth $25,000, exactly the target, so 4x coverage is the break-even point for this team.