What is a weighted sales pipeline?

Weighted sales pipeline is a more logical approach of forecasting. In a weighted sales pipeline, the assumption is that not all leads will be converted i.e. the likelihood and the volume of conversion differs across the stages of the sales funnel. Based on this assumption, a value is assigned to the leads depending upon where they are in the sales funnel.

How does it work?

Different weights are attached to different leads in a weighted sales pipeline. Leads that have higher chances of conversion are assigned more weights as compared to those that don't. In simpler words, more weightage is given to those leads that are further down the pipeline.

How to calculate a weighted sales pipeline?

The value of weighted sales pipeline is given by: Value of deal * Weight based on chances of conversion

This can be understood with the help of an example. The table below shows the weighted sales pipeline of a company.

The Value of the Weighted Sales Pipeline would be the summation of the weighted value at each stage i.e. 135000.