When you’re deep in founder-led selling, you tend to know how things are going. You feel momentum. You sense when things are stalling. But once you start to step back, whether you’re building a team or thinking about exit, you need more than gut instinct.
You need a metric that gives you a fast, reliable signal. That’s where sales velocity comes in.
What is Sales Velocity?
Sales velocity tells you how much revenue you’re bringing in each day based on your current pipeline. More importantly, it tells you if that pipeline is enough to hit your targets.
The formula is simple:
Sales Velocity = (Number of open opportunities × Average deal size × Win rate) ÷ Average sales cycle
Let’s say your annual bookings target is $1.2M. That means you need to be closing roughly $3,300 in bookings per day. If your sales velocity is only $1,200, you’re behind. And the gap is not going to close itself.
Why It Matters
Sales velocity is more than a math exercise. It’s a gut check backed by real data. It tells you:
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If you’re generating enough pipeline
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If deals are moving at the right pace
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If your win rate is holding up
If your velocity is low, you need to adjust. Quickly.
According to Marc, the fastest levers to pull are:
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Increase the number of open opportunities
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Improve your win rate
Deal size and sales cycle length can move, but they take time. If you’re behind plan, start with the inputs you can control.
Common Pitfalls
Marc also shared why sales velocity often gets overlooked or misinterpreted:
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Teams track pipeline totals but not velocity over time
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Stale or unrealistic deals inflate the numbers
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Win rate is calculated incorrectly or not at all
It’s easy to feel busy. Sales velocity keeps you honest.
Watch the Full Webinar
This is just one of several key metrics Marc covers in our on-demand session:
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