Sales Velocity
Definition
Sales Velocity: Sales velocity measures how quickly deals move through the pipeline and generate revenue. Calculated as (number of opportunities × average deal value × win rate) / sales cycle length, it provides a single metric combining pipeline volume, deal size, conversion, and speed. Improving any component increases overall velocity.
Example Usage
“Our sales velocity is $100K/month. We're focused on reducing cycle length from 60 to 45 days to boost velocity 33%.”
Common Misconceptions
Related Terms
Sales Cycle
The sales cycle is the time from first contact with a prospect to closing the deal. It includes stages like prospecting, discovery, demo, proposal, ne...
Win Rate
Win rate is the percentage of sales opportunities that convert to closed deals. Calculated by dividing closed-won deals by total opportunities (won +...
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 Pipeline
A sales pipeline is a visual representation of all active sales opportunities organized by stage in the buying process. Pipelines track deals from ini...
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.