Deal Size
Definition
Deal Size: Deal size refers to the average value of closed sales transactions, typically measured as average contract value (ACV) for subscriptions or average selling price for one-time sales. Understanding deal size helps forecast revenue, design sales processes, and determine whether sales motions are economically viable.
Example Usage
“Moving upmarket increased our average deal size from $15K to $45K, justifying longer sales cycles and dedicated reps.”
Common Misconceptions
Related Terms
Average Contract Value
Average Contract Value (ACV) is the average annual revenue per contract, typically used for B2B subscription businesses. It's calculated by dividing t...
Sales Velocity
Sales velocity measures how quickly deals move through the pipeline and generate revenue. Calculated as (number of opportunities × average deal value...
Quota
A quota is the sales target assigned to an individual salesperson or team for a specific period, typically monthly, quarterly, or annually. Quotas are...
Enterprise Sales
Enterprise sales involves selling to large organizations with deal sizes typically exceeding $100K annually. These sales feature long cycles, multiple...
Explore More Resources
Browse Tools
Discover 100+ vetted tools for every stage of your startup journey
Explore all toolsBuild Your Stack
Take our personalized quiz to get tool recommendations for your startup
Start the checklistRecommended Reading
Curated books to help you learn, grow, and succeed as a founder
View book recommendationsListen & Learn
Top podcasts covering startups, product, growth, and entrepreneurship
Discover podcastsHelp us improve this definition
See something that could be clearer or more accurate? Let us know.