How to work out how many leads you need

Start from the revenue you want and work backwards through each conversion rate.

A funnel converts at each stage. Working backwards from the target turns a vague ambition into a specific number of conversations.

Step-by-step

1. Enter your revenue target and average order value.
2. Enter the conversion rate at each stage.
3. Read how many leads the top of the funnel needs.

How the arithmetic compounds

Suppose you need 20 sales, close 25% of proposals, convert 40% of qualified leads to proposals, and qualify 50% of enquiries. That is 80 proposals, 200 qualified leads, and 400 enquiries.

Seeing 400 rather than 20 changes what you do next. It also shows immediately whether the plan is achievable with the people and hours you have.

Improve the worst rate, not the first one

Because the stages multiply, the largest gain comes from the weakest conversion. Moving proposal-to-close from 25% to 35% reduces the leads needed by nearly a third — usually far cheaper than generating 40% more enquiries.

Most businesses instinctively reach for more traffic, which is the most expensive lever available.

Measure the real rates

Estimated conversion rates are usually optimistic. Track actual numbers for a quarter and the model becomes useful rather than reassuring. If you do not know your close rate, that is the first thing to fix.

Frequently asked questions

Which conversion rate should I try to improve?

The weakest one, because the stages multiply. Improving a poor close rate is usually far cheaper than generating proportionally more traffic.

What if I do not know my conversion rates?

Measure them for a quarter before relying on the model. Estimates are almost always optimistic, and the resulting plan fails quietly.

Why does my funnel model not match reality?

Often because it ignores the sales cycle. Leads generated today produce revenue one cycle later, so a model without a timeline predicts the right numbers at the wrong time.