Deal Value

The value of the deal is an important consideration of how to manage the deal and the likely cadence, days to close and how you might build trust and manage risk with the client.

If your normal deal value is very small (for example a few hundred dollars) the deal is likely to move fast. it’s hundreds of thousands of dollars millions of dollars is likely it’ll take months. The deal valued does have a bearing in that respect. 

The diligence the client will run over the deal,  number of people likely to be involved, the scrutiny of your terms and conditions, after sales service etc. et cetera will also frequently relate to the value of the deal. 

Outlier deals i.e. deals that are either bigger than normal or smaller than normal can also often present challenges. Measured with other parameters, such as how far away the client is, if they are in an industry of done business in before, if they are a  brand-new logo etc. etc. all have a compounding effect on the risk associated with deals that are outside normal for you and your prospect. Small deals that are up-sells or cross sells should close quickly and efficiently. 

  Amplifying Factors

 Deal Age Industry Location

Be aware of the comfort of the large deal. Its only human to be happy to talk about the big deals – “The  Brag accounts” as we call them –  that can be comforting to the business, but present a danger in the eye of your investors. They will be concerned that you may be over reliant on a small number of large deals. 

Let’s say you have three large deals that would 3X your company revenue and you are investing a lot of time and energy in those big deals.  okay and is therefore give immediate alarm bells and concern to be careful having too many large deals in your pipeline. Large meaning beyond what you would normally win the potential danger of dragging these around, presenting them meeting after meeting with your investors or board them if they don’t close, that destroys a lot of confidence.

Further reading :

Why Deal Value Is Such An Important Sales Metric

3 Ways to Increase Average Deal Size

Measure Average Deal Size | How and Why To Use This Critical Metric

How Can Deal “Value” Field Contribute to Your Sales Pipeline?


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