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Revenue Forecasts and the Importance of Funnel Velocity

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As we may have mentioned before, we’re in the business of helping you grow! One crucial way to master your revenue forecasts is to understand your funnel velocity. I know what you’re thinking… “Say what now?!”  Put another way, you must perfect your sales funnel.

Related Read: 3 Steps to Nail Forecasting for Your Business

Your revenue/sales funnel is essentially your customer journey from interest to conversion to purchase. It may vary slightly depending on your in-house jargon, but the basic components of your sales funnel should look something like this:

Your funnel may be more specific to your marketing and products, (eg. it might include a landing page and call to actions or offers) but the concept behind it remains the same: you get inquiries about your product or service, then acquire leads, who ideally become customers that drive sales. The funnel velocity is the speed with which your leads move through your sales funnel towards revenue. Knowing, and more importantly, understanding this speed, allows you to more accurately forecast or predict your revenue. Once you begin to measure the velocity, you may be surprised to learn that what you were predicting for revenue is slightly off. The good news is, once you understand your funnel velocity, you will be able to hone in on the aspects of your customer journey that need adjusting.

“Funnel Velocity is your speed-to-revenue.” — Matt Carroll, VP of Sales for FunnelWise

Matt Carroll, VP of Sales for FunnelWise, recently posted this awesome article on revenue forecasts and funnel velocity. His 3 tips involve tracking, measuring & monitoring your funnel velocity:

  1. First make sure you’re tracking the speed at which your leads are progressing through their journey with your brand.
  2. Next, get to the point where you’re confident in reporting the velocity based on how you measure it.
  3. Once you’ve mastered the first two, you will be able to accurately monitor your revenue forecast and be prepared if in fact, like Matt’s example, your revenue has actually seen a drop. Something no entrepreneur wants to see.

Read the full article here: Don’t be a daredevil with your revenue forecasts! 3 incredibly useful tips for understanding your funnel velocity.

For more information, contact Chris Arndt at [email protected] or call him at 312.494.7014. Visit to learn more about our Cloud CFO Services. 

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