Sales math every founder should know, but 90% don't.

Some simple sales math every founder should know, but 90% don't.

Once you know it, sales seem to soar.

You are always only "X" number of sales appointments/demos (a month) away from hitting your sales goals.

This is a question I ask every founder I meet with. 90% can't tell me because they've never done the math.

Once they know, they become laser-focused.

Let's set up a few examples:

#1 Example (3 sales appts/mo for $100K in new sales)

Let's say you sell a product or service for 5k, and your sales close rate is 50%, you only need to set up 3 sales appointments a month to increase your revenue by $100K a year.

#2 Example: (4 sales appts/mo for $1M in new sales)

Let's say you want to land a new account that will spend $50k a year with you, and your sales close rate is 40%, you only need to set up 4 sales appointments a month to increase your revenue by $1M a year.

#3 Example: (8 sales appts/mo for $10M in new sales)

Let's say you want to land a new account that will spend $250k a year with you, and your sales close rate is 40%, you only need to set up 8 sales appointments a month to increase your revenue by $10M a year. 

What are the assumptions?

- your customer spend (one-time or annual)
- your sales close rate
- your sales goal

Whether you're your a 1-person business or a small business with a sales team, it's easy to get lost doing a zillion things to:

- drive traffic
- create leads
- maximize your sales pipeline performance 

Instead, simplify your focus. Do you need

- 3 sales appts/mo for $100K in new sales
- 4 sales appts/mo for $1M in new sales
- 8 sales appts/mo for $10M in new sales 

It's just math, but 90% of founders don't know the answer. How many sales appts/demos do you need to set up a month?

And if you're selling a product DTC through paid ads, just replace appointments with clicks.

Thoughts or questions?

-Gerald