Rationalizing the Sales Process
When I was starting out in my first startup, sales felt daunting. But now, I see it as a game of probabilities, where each attempt can be optimized to improve the odds of success.
Consider this formula:
Sales = N * C * V
• N = Number of attempts
• C = Conversion rate
• V = Value of sale
With this approach, sales becomes a matter of optimizing these three factors. Note: this is a slight tweak to the Sales Velocity formula. Both are forward indicators of future revenue.
To Optimize N — Number of Attempts:
🔶 Expand your market reach.
🔶 Increase outreach through cold emails, DMs, or networking.
🔶 Learn from each conversation to deepen your understanding of customer needs.
To Optimize C — Conversion Rate:
🔶 Improve product-market fit.
🔶 Refine your messaging to make it compelling.
🔶 Network and build warm introductions.
To Optimize V — Value of Sale:
🔶 Focus on valuable leads that are worth your time.
🔶 Don’t underprice your product; know its worth.
🔶 Higher N and C make it easier to maximize value.
While simplified, this formula helped me navigate the complexities of sales and focus on what matters — predictable revenue growth.
I also focus on pipeline velocity because it keeps you honest about how fast you are converting sales. In basic terms, velocity = speed + direction. Meaning, you have to grow sales pipeline at high speed, in the right direction.