How to control your company's sales
Selling more without controlling sales usually reduces profit. Control starts when every sale carries margin, channel and owner.
Controlling sales means tracking five numbers per period: opportunity volume, conversion rate, average ticket, sales cycle and margin by product or channel. With those five, revenue forecasting becomes arithmetic instead of guesswork.
Record margin, not just revenue
Without variable cost attached to each sale, you cannot know which product or channel truly sustains the company.
Pipeline and conversion
Measure opportunities created, proposals sent and deals closed. The ratios reveal whether the problem is demand generation or closing.
Revenue forecasting
Forecast = open opportunities × historical conversion rate × average ticket, adjusted for sales cycle. Feed it straight into cash flow.
Commissions and commercial policy
Commission on revenue encourages discounting; commission on margin encourages profitability. Align the policy with the outcome you want.
A few minutes, no cost.
Frequently asked questions
Which sales indicators should I track?
Opportunities, conversion rate, average ticket, sales cycle and contribution margin per channel.
How do I forecast next month's revenue?
Multiply open opportunities by the historical conversion rate and the average ticket, respecting the average sales cycle.