How Many Leads Do I Need?

The answer comes from simple analysis.

• Determine your sales goal.
• Calculate value of a new account in the first year.
• Use these numbers to determine the number of leads needed to reach the goal.

Set a Goal

Are you trying to grow new account sales by $10,000 or $1,000,000?

Challenging goals require you to sift through more leads.

Calculate the Value of a New Account

Step 1: Determine the number of new accounts you opened last calendar year.

Step 2: Determine the total sales dollars that came from all new accounts during that year.

Step 3: Calculate to find average value.

Total Sales from New Accts ÷ No. of New Accts = Avg. Value

Example: Last year you opened 3 new accounts. All together the 3 accounts generated $75,000 in sales.
$75,000 ÷ 3 = $25,000
$25,000 is the average value of a new acct.

How many leads do I need?

Divide your goal by the average value of a new account to find the number of new accounts needed.

Goal ÷ Avg. Value of a New Acct. = No. of New Accts. Needed

Example: Let’s say you set a goal of $100,000 in new account sales. You calculated the average new account brings $25,000 in sales during the first year.

$100,000 ÷ $25,000 = 4 new accounts needed to reach goal

More tomorrow on what to do with the number of new accounts needed to reach your goal.