We’re all about that bass B2B today. Specifically, building out your lead generation program. How many leads does it take to close a sale? Let’s unpack it.
Part 1: Number of Leads
To determine how many leads you need per month, you need to know the end goal of your business. If you’re just starting out, there’s a good chance that your lead quality will be low. That’s ok.
The name of the game in the early stages is to generate as much awareness as possible. By doing so, you’ll generate enough data to measure the number of leads it takes to generate a sale.
Whether you’re just starting out or you’re a seasoned lead gen pro, it’s crucial to nurture your leads throughout the sales funnel.
Part 2: The Metrics
Bust out your calculator. It’s time for some math.
- How many leads do you need to make a sale = Total Leads / Sales from Inbound
- Average Sale = Revenue from Sales / Number of Sales From Leads
Let’s use numbers: Let’s say, company ABC generated 15 sales from 900 leads, totaling $150k in the first month. Their goal for next month is $400k.
- Number of leads required to make a sale: 900 / 15 = 60
- Average deal size: $150,000 / 15 = $10,000
- Number of sales required to hit $400k target: $400,000 / $10,000 = 40
- Monthly lead goal: 40 deals * 60 = 2,400
We’re slightly obssesed with lead gen, so if you’re struggling to dial it in, we shoud talk.
