Pipeline (sales pipeline) is a visual representation of where potential customers are in the sales process, organized in stages from initial contact to closed deal. The pipeline provides a systematic framework for tracking opportunities, forecasting revenue, and managing sales activities. According to Salesforce (2024), companies with structured pipeline management have 28% higher win rates.
Effective pipeline management is essential for sales success:
According to Gartner (2024), reps with well-defined pipelines close 16% more deals than those without.
| Stage | Description | Probability |
|---|---|---|
| Lead | Initial contact identified | 5-10% |
| Qualified | BANT criteria met | 15-25% |
| Discovery | Needs and pain points uncovered | 25-40% |
| Proposal | Formal proposal delivered | 50-60% |
| Negotiation | Contract terms being discussed | 70-80% |
| Closed Won | Contract signed | 100% |
Total potential revenue from all active opportunities:
Pipeline Value = Sum of all opportunities
Pipeline adjusted for probability:
Weighted Pipeline = Σ (Value × Probability)
| Opportunity | Value | Stage | Probability | Weighted |
|---|---|---|---|---|
| Customer A | $50,000 | Proposal | 50% | $25,000 |
| Customer B | $35,000 | Negotiation | 75% | $26,250 |
| Customer C | $20,000 | Discovery | 30% | $6,000 |
| Total | $105,000 | $57,250 |
Ratio between pipeline and quota:
Pipeline Coverage = Pipeline Value ÷ Quota
Reps can estimate future commission from their pipeline:
| Deal | Value | Commission Rate | Probability | Expected Commission |
|---|---|---|---|---|
| Customer A | $50,000 | 10% | 75% | $3,750 |
| Customer B | $30,000 | 10% | 50% | $1,500 |
| Total expected | $5,250 |
Healthy pipeline:
Unhealthy pipeline:
Minimum 3x is recommended. If your win rate is 25%, you need 4x pipeline to hit quota.
Require objective evidence to move deals between stages (signed LOI, confirmed budget, etc.).
Remove deals with no activity for 30+ days, or where the customer has explicitly said no.
With Prowi, you can connect your CRM pipeline to automatic commission forecasting, track progress toward quota, and give reps real-time visibility into expected earnings.