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Jordan Hale
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Maya Chen · close Oct 18 · 6d in stage
what is sales velocity
Four inputs, then divide by cycle days
What is sales velocity is how much pipeline money moves per day. Knockdesk is field sales software that holds the deals you use as inputs. The sales velocity formula is opportunities times win rate times average deal, divided by cycle days. Write those four names before anyone reads a dollar-per-day.
Book a Walkthrough| Input | What you count | In the formula |
|---|---|---|
| Opportunities | Open deals you already named in the window | The first multiply |
| Win rate | Won deals divided by won plus lost, as a decimal | The second multiply |
| Average deal | Mean value of the deals you included | The third multiply |
| Cycle days | Days from create to close for those deals | The divide |
| Formula | (opportunities x win rate x average deal) / cycle days | Money per day |
The four
A velocity number with no named inputs is a Friday argument
You feel it when two managers both say the pipe is faster and one counted knocks. What is sales velocity starts after you name opportunities, win rate, average deal, and cycle days. Mixing sits into opportunities, or using a percent instead of a decimal, changes the dollar. Write the four. Then divide.
Opportunities
Deals in the window. A knock is not an opportunity unless you already opened a deal from it.
Win rate and average deal
Win rate is a decimal in the multiply. 25 percent is 0.25. Average deal is the mean value you chose.
Cycle days
Days those deals take to close. If you skip this divide, you have a pile, not velocity.
Worked example
Twenty deals, a quarter win, twenty days, a number you can recompute
20 opportunities, 25 percent win rate, $4,000 average deal, 20 cycle days. Multiply 20 x 0.25 x $4,000 = $20,000. Divide $20,000 / 20 = $1,000 per day. If someone uses 25 instead of 0.25, the number jumps by 100. If they drop cycle days, they are not doing sales velocity.
| What you change | Numbers | Velocity |
|---|---|---|
| As written | 20 x 0.25 x $4,000 / 20 | $1,000 per day |
| Win rate as 25, not 0.25 | 20 x 25 x $4,000 / 20 | $100,000 per day. Wrong input. |
| Cycle days 40 | 20 x 0.25 x $4,000 / 40 | $500 per day |
On the desk
How Knockdesk tracks it
Knockdesk holds the deal, the won or lost outcome, the value, and days in stage. You still name opportunities, win rate, average deal, and cycle days, then do the sales velocity formula yourself. The product does not ship a velocity widget that outputs this dollar-per-day. Full desk is on the pricing page.
Deal
Sample
Related
Keep going from the four inputs
- Field sales glossary
The hub this term opens from.
- Sales activity tracking
The visits that can open the deals you later count.
- Pricing
Full desk is the only plan. A free trial is not open.
FAQ
Frequently asked questions
What is sales velocity?
Sales velocity is pipeline money per day. The sales velocity formula is opportunities times win rate times average deal, divided by cycle days.
What are the four inputs?
Opportunities, win rate, average deal, and cycle days. Name all four. A percent without the other three is not velocity.
Do I use 25 or 0.25 for a 25 percent win rate?
Use 0.25. In the example, 20 x 0.25 x $4,000 / 20 is $1,000 per day. Using 25 invents $100,000.
Does Knockdesk have a velocity widget?
No. The desk holds the deal, the outcome, the value, and days in stage. You still write the formula.
Is a knock an opportunity?
Not by itself. Count deals you already opened. Knocks belong in activity tracking until a deal exists.
What happens if I skip cycle days?
You have a pile of expected value, not sales velocity. The divide is the speed.
How much does Knockdesk cost?
Full desk is on the pricing page. A free trial is not open.
The four
Bring the inputs that still change in the meeting.
We will name opportunities, win rate, average deal, and cycle days on one Full desk seat. A free trial is not open.
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