The War Room
Discussion
Post

3x Pipeline - Real or BS?

As with most orgs, the pipeline conversation is an intense one. We all want more of it but it needs to be accurate.


There is a big push for each rep to have 3x pipeline vs their number which I see as BS. Yea, I’d love to have it but I like an accurate forecast where I will still hit my number but it’s not 3x. I feel that calling for 3X in pipe makes reps put complete BS deals in that will just get pushed/killed in a few months. But, I’m not sure I have a better solution to call out other than keeping it accurate and honest.


What are the overall thoughts on this metric?

3x pipeline is a must?
Attached poll
*Voting in this poll no longer yields commission.
πŸ”Ž Prospecting
πŸ‘‘ Sales Strategy
πŸ“ˆ Closing
4
LordBusiness
Politicker
+7
Chief Revenue Officer
I put β€œgood strat” cause I think there is something to be said for having a consistently healthy pipeline; too many sellers over count on the deals in their pipe, and don’t foresee stupid shit that happens out of our control (leadership changes at prospects, etc) I personally would peg it as 2.0x pipe to goal, 3.0 is a bit strong especially
DadFather
Politicker
+5
Enterprise Account Executive
Agreed, healthy pipeline is a sign of good activity, growing the business, and hitting targets. I think my main gripe with it is that I have seen people use it to put fake opps and it’s an unrealistic target. 2X is much more reasonable to me.Β 
Thanks for your insights, Lord.Β 

LordBusiness
Politicker
+7
Chief Revenue Officer
No worries! Keep on keeping on!Β 
mrjve
Good Citizen
Account Executive
+1
ouroborus
Catalyst
+2
VP sales
It really depends on the maturity of the business and how well the close rate is tracked. We are very mature and track by stages where entering a quarter we want 1.3X current quarter stage 5 deals where stage 5 is pretty well baked. The 2-3X stuff trickles down from MQA and SQA levels through BDR's into stage 3 pipe and yes 3X is ideal at that level.. so again, depends on where you are and what role you are playing..
Soiboi
Politicker
+5
Account Executive, EIAS/Compliance
solid practice for sure. If you can 3x pipeline rather than 2x pipeline then yeah thats better lol but if it's fluff just DQ it and get it out. You can have a great year with 1x right so it's all just how well you manage your pipeline.Β 
1nbatopshotfan
Politicker
+5
Senior Director, Enterprise Technology
Our managers goal is to have us at about .8x in the pipeline for the quarter that’s starting. He trusts that we are going to close what we say we will. That way he only revises upwards. It’s been a good strategy and a better mental health experience than pulling deals out of thin air.Β 
EQSales
Good Citizen
+1
VP of Sales
3x pipeline on its own is very dangerous. Β it encourages "comfort opportunities" or opportunities/pipeline that likely won't close and is only a waste on time and resources at numerous levels.

we leverage a pipeline reconciliation plan- based on your number, your personal goal, current closed to date, qualified pipeline, conversion rates, etc. Β this provides reps with a clear understanding of exactly how much pipeline gen they need to do. Β sometimes it can be very scary to look at the truth, but it provides a path and plan. Β ensures we don't spend time on bad deals. Β other times it shows the payoff from consistent PG.Β 

Β we encourage reps to put deals in a stage we have that omits from pipeline and is meant to revisit in 3-6 months to eliminate comfort pipeline, its dangerous at so many levels: productivity, close rates, ASP, quota attainment, forecasting=investment, etc, etc, etc

there MUST be a qualification mechanism built into the sales process or else 3x pipeline is BS
4
What major actions would you take on month ends and quarter ends to hit your quota and also increasing the logos of yours from your pipeline?
Question
11
6
TAM or "Total Available Market" as a KPI is subjective BULLSHIT. Let's discuss.
Discussion
8