The forecast says 80%. Deals at 80% close half the time.
A pipeline percentage is a statement of confidence, not a probability, and the gap between the two is where hiring and cash decisions go wrong.
SBy Steve··4 min read
Most sales forecasts are not dishonest. They are uncalibrated, which is a different problem with a different fix. When a salesperson marks a deal at 80%, they are usually reporting how the conversation feels: the buyer is engaged, the objections have gone quiet, the relationship is warm. What the reader of the forecast hears is something else entirely: that four out of five such deals will land, in the month stated, at the value stated. Those two meanings can drift a long way apart before anyone notices, because the only…
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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.