Base estimated revenue on total secured sales + total weighted value of your opportunities
To get a good estimation of your future total revenue, it's important to look at both secured revenue and the weighted value of all the opportunities in your pipeline.
This article will cover:
- Calculating weighted value
- Calculating total future revenue
- Displaying estimated total future revenue in Upsales
Calculating weighted value
Since the sales process is always ongoing things will happen and opportunities will fall through. That's why it's a good idea to base future revenue on a weighted value of your opportunities.
Weighted opportunity value
Weighted opportunity value = opportunity value * probability for opportunity to become a closed deal
Example: Opportunity value is €3,000. Probability to close the deal is 50%. Weighted value is €1,500 (3,000*0,5)
Probability is based on the opportunity stage. Each opportunity stage in Upsales represents a probability percentage for the opportunity to become a closed deal.
By default the opportunity stages and their probability to become a closed deal are:
- Lost deal (0%)
- Fallback (5%)
- Prospect 1 (25%)
- Prospect 2 (50%)
- Verbal agreement (75%)
- Closed order (100%)
These opportunity stages and their probability percentage can be changed in:
Settings → CRM → Opportunity stages
Weighted pipeline value
Weighted pipeline value = the sum of every weighted opportunity
Example: There are three active opportunities in the pipeline. The weighted value of each is €5,000, €1,500, and €2,000. Weighted pipeline value is €8,500
Calculating total future revenue
By adding secured revenue and weighted pipeline value you'll get a good estimate of what the revenue will be within a certain time period.
Estimated total future revenue = secured revenue + weighted pipeline value
Example: In the coming 12 months the revenue already secured is €30,000. The weighted value of the pipeline is €200,000. Estimated total future revenue is €230,000 (30,000+200,000)
Displaying estimated total future revenue in Upsales
In Upsales Insights it's possible to create a dashboard that displays the estimated total future revenue.
- In Upsales Insights, define the time period of which you want to get a total revenue estimate.
- Include total secured revenue from all closed deals
- Include the weighted value of your pipeline.