Weighted pipeline

The value of a sales pipeline after multiplying each deal or stage by its probability of closing.

Example

A 3,000,000 pipeline weighted by stage conversion rates of 10%, 30% and 60% is worth 750,000.

Important

Use the company's own historical conversion rates, not generic percentages.

Related terms

• Sales pipeline — The set of potential deals a company is pursuing, usually organised by stage from first contact to signed contract.
• Win rate — The share of sales opportunities a company closes successfully over a period.

Lessons that explain it

• A pipeline is worth its probability, not its headline — Sales pipelines are presented at full value. Weighting deals by stage, checking historical conversion and removing stale deals shows how much revenue is realistically coming. (10 min)

All 578 terms in the Investing glossary