 Features

Case Studies

Resources

• Matija Nakić

# Weighted pipeline - How to for B2B companies

Updated: Dec 2, 2021 If you’re a company selling products or services directly to a business through a non-binary sales process (with stages) - a good practice is to use a weighted pipeline in your revenue forecast. Instead of using expected revenue (wishful thinking) in your financial plan, multiply the expected revenue of every account with the probability of closing the sale. Here is an example of how you can create a weighted pipeline:

• Account A = \$20.000; probability = 10%; weighted opportunity = \$2.000

• Account B = \$18.000; probability = 20%; weighted opportunity = \$3.600

• Account C = \$22.000; probability = 50%; weighted opportunity = \$11.000

• Account D = \$28.000; probability = 50%; weighted opportunity = \$14.000

• Account E = \$30.000; probability = 90%; weighted opportunity = \$27.000

• Account F = \$32.000; probability = 90%; weighted opportunity = \$28.800

The formula is simple: Deal value * Probability of closing = Weighted revenue A summary of the example above is: REVENUE PLAN = \$150.000 WEIGHTED REVENUE = \$57.600

Quite a difference huh? Mind you, this is a very shallow and unrealistic example. In real life, there will probably be more opportunities or greater revenue expected. The probabilities should be connected to a sales stage rather than to a hunch. In this example we can set the stages and probabilities as follows:

• 10% probability - demo

• 20% probability - we got the client’s data

• 50% probability - the client asked for a proposal

• 90% probability - waiting for the contract signing