If you want to grow your revenue, you need to keep a healthy number of leads flowing into your sales pipeline every single month. Sales teams use various methods to calculate the minimum amount of leads and one of the formulas that you can also use looks like this:
(Revenue quota per sales rep – Percentage of naturally generated quota) / Average revenue per deal / Conversion rate = Number of leads needed
For the sake of an example, let’s take some hypothetical numbers and try to calculate the number of leads needed.
- The average revenue quota per sales rep per month → $100,000.
- The average revenue per closed deal → $5,000.
- The average percent of the quota that sales rep can generate naturally → 30%.
- The conversion rate from leads to deals → 15%.
Now, let’s take the average revenue quota per sales rep and subtract the percentage of that revenue that sales reps can generate without any additional leads. In our example, 30% of the revenue is self-generated, leaving us with $70,000, or 70%, that every rep needs help with.
$100,000 – 30% = $70,000
Next, we divide this amount ($70,000) by the average deal size, which is $5,000 in our case. The number we get is an average number of closed deals that every sales rep needs to close in order to deliver their revenue quota. In our case, it’s 14 deals.
$70,000 / $5,000 = 14 deals
Finally, we take the last metric from our list and divide the number of deals required (14) by the conversion rate from leads to deals, which is 15% in our case. As a result, we get 93 leads, which is an average number of leads that every sales rep needs to make the monthly quota.
14 / 0.15 = 93 leads
Now, if you’re using lead generation solutions such as Oxyleads to find new companies and people that fit your Ideal Customer Profile, you can take this number (93 leads) and use it to decide which of the pricing plans is right for you. Typically, pricing plans are based on the number of leads you get and if you want to have enough leads every month and not overpay, you’ll have to do some calculations.
How to choose the right pricing plan
Let’s say that your team consists of five sales reps. If each of them need on average 93 leads per month, then you’ll need at least 465 leads. If you’re choosing from our pricing plans, then the Professional plan that includes 500 monthly credits would fit perfectly.
Usually, sales teams have high quotas to hit, and hundreds of leads are needed every month. With the Professional and Premium plans you get either 500 and 2,000 monthly email credits that accumulate each month and, if you need extra credits, with the paid plans you can always buy more. So, if a month comes to an end but you still have some credits left, there’s no reason to worry – the leftover credits will be transferred to the next month.
If you need to get email addresses in even more significant amounts, then the Enterprise plan is the way to go. You can get a completely customized set of features and email credits.
Contact us for more info
If you’re still not sure exactly how many qualified leads per month you need in order to achieve a steady revenue growth, feel free to contact our sales team at firstname.lastname@example.org. We’re more than happy to help.