Chapter 5PIPELINE ANALYSIS
Step 1. Calculating Pipeline Strength—What Do You Need to Make Quota?
During my discussion of the planning steps, I referenced a couple of times the importance of building your pipeline to optimum strength. The next obvious questions are (1) what do you mean by optimum strength? And (2) how do you calculate your pipeline requirements?
Let’s deal with the first question. If you have a $1 million annual sales quota, at a minimum you need to generate $1 million in potential sales opportunities. When you factor in your win rate, say 50 percent—in other words, you win one, you lose one—it means you need to generate at least $2 million in opportunities and take them through the entire sales process. Does that make sense? ...