how do you sales as a science and help us budget for leads what I'm gonna do is it gonna draw our standard funnel and in this funnel I'm gonna come out with a win and I win hmm let's say $10,000 in annual contract value in order for me to win in a $10,000 deal you know not every opportunity is gonna be a win so let's say that our win ratio is 25% meaning one win requires four opportunities now in order to have these qualified opportunities I also need a number of meetings to determine if the
opportunity's qualified that opportunity we call sales qualified lead in order to get for qualified opportunities let's say that only eight out of ten are qualified opportunities of the meetings that I'm having that means I need five meetings in order to get five meetings you know like some but let's say this is involved I know I need 10 inbound leads we call those amount leads in this case m:q else that means from 10 to 5 that's a 50% conversion rate I now have three conversion rates that allow me to start budgeting for my $10,000 win now
how much am I willing to spend on a $10,000 win in order to for a guaranteed win let's say I'm using 10% so I'm willing to spend $1,000 for a guarantee $10,000 winner how much can I spend on my MQL well if my win rate from an MQL to win is one in 10 that means that essentially I am willing to spend $100 per MQL in order to make sure that I get one rim ratio of a thousand dollars spent in to $10,000 wins that gives me an idea on how much essentially I am willing
to spend over a given month because if in a given month I want more of these wins let's say I want 25 of those wins so in order to have 25 of those wins here what I need to do I need to spend hundred dollars times ten times 25 and that gives me my budget for that month in order to spend on mqs this allows us to use based on these metric a very rudimentary science level in order to determine budget cost per mql and so on and so forth now not every mql is created
equal so for example an inbound mql may come in through content which is differently priced than when we go to a trade show so keep that in mind with this we are using science in order to determine what price we can pay for an MQL and it helps us budget on a monthly basis on what we need to spend on MQL in order to help us to win the right amount of revenue
