How does Math of Sales work?
Many supposed gurus are claiming that “sales is no longer a numbers game” and recommending that you “focus on quality, not quantity.”
Here’s the bad news: The math of sales has never changed. If you need to close 5 sales but only have 3 qualified prospects, you won’t hit your number.
Here’s the good news: You don’t have to sacrifice quality for quantity.
You don’t have to spend an hour researching every prospect in order to have a “quality” conversation. The quality of the conversation lies in your ability to personalize your message to the needs of the prospect.
What does it mean?
No matter how cleverly you craft your message, your prospect might not pick up the phone or reply to your email. And even if they do pick up or reply, it might not be the right time. “Fine, I need to do a lot of prospecting. But how much?”
The real, no-fluff answer is, “However much it takes to hit your quota.”
How to calculate your Math of Sales?
We’ll work backwards from a quota of 1 sale. (You can do the multiplying later.)
- Goal: Close 1 sale.
- A 25% closing rate means you need to present to 4 prospects.
- An 80% meeting hold rate means you need to schedule meetings with 5 prospects.
- A 20% meeting scheduled rate means you need to speak with 25 prospects.
- A 10% dial-to-connect or email reply rate means you need to reach out to 250 prospects once each (or 50 prospects five times each).
Get our easy to use calculator below to figure this out yourself. Here’s a helpful video to walk you through it.