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Why Sales Teams Should Ditch Weighted Averages
2025-04-29 05:45:03| Spiritual Career Counseling
The key to a successful magic trick is the illusion.When it comes to forecasting revenue, investors are looking for more than just smoke and mirrors. Increasingly, founders use Weighted Average Contract Value (WACV) to make their pipelines look promising. But investors want data, not guesswork.While WACV might seem like a convenient way to show growth potential, it often leads to skepticism, as it relies heavily on subjective probabilities rather than hard facts. Fortunately, there are several alternatives to weighted average contract value that can provide investors with more transparency and confidence in a founder's sales pipeline. Here are three approaches that offer a clearer, more data-backed picture of pipeline health.1. Deal Stage Visibility as an Alternative to Weighted Average Contract ValueRather than condensing pipeline information into a single number, founders can offer transparency by breaking down deals by stage. Investors are more likely to trust a clear breakdown of w...
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