Sales funnel: how to calculate how many leads you need
A sales target only becomes a plan when it turns into numbers for each stage of the funnel: how many visitors, leads, qualified leads, meetings and proposals the team needs every month. The calculation works backwards, from the target to the top of the funnel.
From the target to the top
- Sales needed = monthly target ÷ average deal size, rounded up.
- Proposals = sales ÷ proposal-to-sale rate.
- Meetings = proposals ÷ meeting-to-proposal rate.
- Qualified leads = meetings ÷ qualified-to-meeting rate.
- Leads and visitors follow the same logic.
Example
A $60,000 target with a $1,500 deal size needs 40 sales. With a 30% close rate, that is 134 proposals; with 60% of meetings turning into proposals, 223 meetings; and so on up to the top.
Where to improve
Every stage multiplies the others. Improving a low-conversion stage usually brings more sales per point gained than improving one that already converts well. Before buying more traffic, check whether the leads you already have are being followed up and qualified properly.
Sales cycle
In B2B sales, a lead can take weeks or months to close. Plan the top of the funnel ahead of the target month, and track conversion by cohort (leads from the same month) to get reliable rates.