Articles from March 2025

As a sales manager, I have pipeline meetings often. But along the way, I’ve learned that pipeline review meetings can be an incredible coaching opportunity — you just have to approach it right.

Let’s start with an analogy: You wouldn’t expect a rookie with no training to pick up a bat in a major league baseball game and knock it out of the park on his first try. Similarly, if a sales manager is only spending 30 minutes a month coaching each of their reps, it’s unreasonable to think that the manager is going to improve rep performance.

But these pipeline reviews should be true coaching sessions — not data-scrubbing meetings. I’ve found salespeople become more capable of closing deals only when managers actively coach them, not when they’re badgered about getting the forecast right. Unfortunately, many pipeline conversations resemble the latter more than the former.

Today, I’ll review the best pipeline coaching strategies and share some tips from my experience along the way.

Table of Contents

• What is pipeline coaching?
• How to Conduct a Pipeline Review That Actually Moves Deals Forward
• Pipeline Coaching Strategy Tips
• Turn Strategy Into Action With Pipeline Coaching

What is pipeline coaching?

Pipeline coaching is when a sales manager mentors a rep during a pipeline review, focusing on deal strategy rather than just forecasting. Instead of only tracking numbers, the conversation should center around:

• How to improve deal conversion rates.
• Addressing common roadblocks in the sales process.
• Coaching reps on outreach, follow-ups, and closing techniques.

Numbers alone don’t help reps improve. They need guidance on how to move deals forward. Effective pipeline coaching ensures that every conversation adds value, helping reps navigate objections, refine their approach, and close more deals.

Importance of Pipeline Coaching

Pipeline coaching is one of the most powerful tools a sales manager has. Why? Because it directly impacts:

• Forecast accuracy. Reduces pipeline bloat by helping reps focus on real opportunities.
• Deal velocity. Helps move deals through the pipeline faster by eliminating roadblocks.
• Win rates. Ensures reps are properly qualifying leads and closing the right deals.

Without effective coaching, reps waste time on bad opportunities, miss key buying signals, and struggle to close.

But here’s the problem: Most pipeline meetings aren’t coaching sessions. They’re status updates. Reps list off deals, managers listen, and nothing changes.

Leslie Venetz, Founder of The Sales-Led GTM Agency, sees this all the time. She puts it bluntly, “Instead, use pipeline meetings as a way to dig into where deals are not converting. Uncover trends and use it as an opportunity to provide reps specific coaching on nuanced elements of the sales cycle.”

So, what does good pipeline coaching look like? I’ll get into it in the next section.

How to Conduct a Pipeline Review That Actually Moves Deals Forward

The last thing salespeople need is another meeting that doesn’t add value. A poorly run pipeline review can feel like just another calendar block filled with status updates that no one actually benefits from. That’s why I focus on making every pipeline review a high-impact working session — something that actually helps reps close deals.

For reps, this means getting real support in the areas they need most — whether that’s overcoming objections, multi-threading effectively, or re-engaging stalled prospects.

For managers, it’s an opportunity to coach with intention, identify deal patterns, and help the team make real progress.

Here’s how to make sure every pipeline review delivers value.

1. Start with preparation.

A great pipeline review starts before the meeting even begins.

I fully agree with Venetz’s advice here: Reps should come in prepared with 2-3 areas where they need support. This flips the conversation from a passive update to an active coaching session.

For example, instead of a rep saying, “I have a deal at 50% likelihood of closing,” she should be saying, “I’m struggling to get buy-in from the CFO. I’ve built a strong case with the VP of Sales, but I need help navigating the financial objections.”

Now, instead of just reviewing raw numbers and CRM updates, you’re strategizing together on how to win the deal.

2. Focus on conversions instead of updates.

If your pipeline meeting is just a rundown of open deals, you’re doing it wrong.

Look for patterns. Are deals stalling at the same stage? Are certain accounts ghosting reps after a proposal? Is there a common objection that keeps surfacing?

Instead of asking, “How many deals are in your pipeline?” I recommend asking:

• Which deals have stalled, and why?
• Where are you losing the most opportunities?
• What’s keeping this deal from moving forward?

By shifting the focus from what’s in the pipeline to why it’s not converting, you uncover real coaching opportunities that actually improve performance.

3. Give your reps ownership.

A pipeline review shouldn’t feel like an interrogation. If reps are just responding to your questions, they’re not thinking critically about their deals.

Flip the script — let them lead. Instead of managers running the meeting, I like to give reps some ownership in the discussion, asking questions about:

• Deals that are at risk (“I think I’m about to lose this one — here’s why”).
• Areas they need help with (“I struggle with urgency — what’s the best way to create it?”).
• Their strategy for moving deals forward (“I’ve had success multi-threading — here’s how I did it”).

I’ve learned that these tactics help shift meetings from status updates to real problem-solving. And more importantly, reps walk away with clear next steps instead of just passive feedback.

4. Focus on next steps — not just strategy.

A deal with no momentum is a deal that’s going nowhere. If a rep says they’re “waiting to hear back,” that’s a red flag.

Challenge them to be more proactive:

• “Just checking in…” → “I know this is a key priority for Q2 — would you be open to a quick call to align on next steps?”
• “They’re thinking it over.” → “Who else needs to be involved in the decision-making process?”

If a deal is sitting stagnant, push for clarity:

• What’s the plan to re-engage?
• Who else can we bring into the conversation?
• What’s stopping them from deciding today?

Now you’ve got the basics on how to run a pipeline review meeting — next I’ll share some expert tips to help you improve your strategy.

Pipeline Coaching Strategy Tips

Once you’ve structured your pipeline meetings to be more than just a forecast review, the next step is optimizing your coaching approach. I’ll share three key strategies to make your pipeline coaching more effective and results-driven.

1. Talk about early-stage and late-stage deals.

Even though it’s tempting to only address the deals about to close, I think it’s important to spend time on deals early in the selling process as well. Why? It’s an opportunity to get bad deals out of the pipeline early so reps don’t waste their time and to offer reps some valuable insight.

Obviously, closing is the final (or second-to-last, if you count retention) step of a sales process, and a sales pipeline represents the sum of a rep’s opportunities — along with where they stand in each stage of that progression.

If a rep is going to learn, grow, and ultimately become as well-rounded a salesperson as possible, they need to have perspective on their opportunities at every stage — even if they don’t all end in closed-won deals.

That doesn’t mean you have to dig into a thorough investigation of every last qualified lead in a rep’s pipeline during these kinds of meetings — but you shouldn’t focus exclusively on late-stage deals either.

I think it’s a tough balance to strike — as you don’t want to exhaust too much of your and your rep’s time — but a rep’s pipeline isn’t limited to the home stretch. Make sure you cover those additional, earlier bases as well.

What I like: Sales managers can have a greater impact on a deal in its early days, increasing the likelihood of earning the business.

2. Spend more time on fewer deals.

The natural inclination of sales managers is to get through the entire pipeline during each meeting, but in my opinion, this isn’t the best use of time. I recommend focusing intensely on a handful of deals, and doing a deep dive into each — the competition, the buyers in the organization, the rep’s approach, and so on.

As I touched on in the previous section, you don’t want to spend too much time on pipeline coaching — especially if you have a larger team of reps to account for. You’ll stretch yourself too thin, and in many cases, too much pipeline coaching can have diminishing returns.

When it comes down to it, discerning which deals in a rep’s pipeline deserve extra attention is a judgment call. If possible, I would try to strike a balance between highlighting some wins and constructively touching on some deals that show room for improvement.

Example: Rather than skimming over 20 deals in one meeting, spend 15-20 minutes breaking down two or three critical opportunities. If a rep is struggling with an enterprise deal, walk through a step-by-step strategy to navigate the complex buying process.

There’s something to be learned from both opportunities that go well and ones that don’t pan out — so try to offer a mix if possible. That said, don’t indiscriminately cover every last opportunity in depth each time you have one of these meetings. You’ll likely wind up being redundant and wasting time if you go that road.

What I like: A manager can change the trajectory of a deal if it’s at risk of going awry or address emerging problems.

3. Coach more, inspect data less.

Managers who have been promoted from reps earned their management role by selling well, not inspecting data well. And yet, data-scrubbing is often the focus of pipeline management meetings. While accurate data is important, more time should be allotted to coaching reps through deals than cleaning up the numbers.

If you can, use data to inform the coaching session as opposed to dominating it — let the numbers guide where the conversation goes, but don’t just sit there rattling off figures and then sending reps on their way when you’re done.

Pro tip: “Coaching requires a leader who comes prepared to offer insights, ask questions, make space for role-playing or brainstorming, and lead the rep to better outcomes because they understand WHY they need to change their habits to get better outcomes,” says Venetz.

Corny as this might sound, sales is — at its core — a fundamentally human practice. Any data your sales org gathers is ultimately people-driven. If a rep’s numbers aren’t where they should be, use that as a starting point in a pipeline coaching session.

From there, you can dig into the elements of their efforts that might be skewing those figures away from their goals. There’s a difference between simply relaying information to a rep and helping them make sense of it. Be constructive — and teach more than you dictate.

What I like: By spending less time inspecting data, your sales managers can mentor reps on their process and give advice about live deals.

Turn Strategy Into Action With Pipeline Coaching

Overall, a good pipeline review session is more forward- than backward-looking. I like to influence live deals today rather than merely documenting their outcomes later. Hopefully some of these tips inspire you in your next pipeline review session.

By focusing on early-stage deals, prioritizing deeper coaching, and shifting away from pure data inspection, you turn pipeline coaching into a powerful tool that drives results for your team.

Over the course of my career, I’ve learned firsthand that practicing good sales behaviors is essential for success … and that bad sales behaviors can sink an entire sales org.

Developing good sales behaviors yourself and helping your team improve is the hallmark of an effective sales professional. But it’s hard to know how to get better when you don’t know what you’re doing wrong.

That’s why I wrote this article. In this post, I’ll start by walking through five of the most common bad sales behaviors that hold promising salespeople back. Then, I’ll discuss some of my top good sales behaviors to nurture, as well as strategies to monitor and improve sales behaviors on your team.

Table of Contents

• Bad Sales Behavior to Kill
• Good Sales Behaviors to Practice and Nurture
• How to Monitor and Improve Sales Behaviors in Your Team

Bad Sales Behavior to Kill

1. Getting Stuck in “Reacting” Mode

The number one bad sales behavior that I’ve seen hinder otherwise promising salespeople is getting stuck in “reacting” mode. Too often, sellers wait passively for leads to find them. Rather than proactively reaching out and building relationships with prospects, these reactive salespeople just wait around for a perfectly teed-up opportunity to come their way.

This approach is understandable. After all, it’s a lot less work than actively connecting with potential buyers. However, experts agree that reactive salespeople are likely to be constantly playing catch-up to their proactive competitors.

In his comprehensive book Sales Management. Simplified., Sales Coach Mike Weinberg argues that “probably the most common and damaging driver of salespeople being perceived and treated simply as vendors is being late to a sales opportunity.” Weinberg notes that to be seen as a valuable consultant rather than just someone trying to make a quick buck, it’s essential for salespeople to be proactive, taking the initiative to share insights and earn their seat at the table before the customer is ready to buy.

Source

2. Focusing on the Product

Another common failure mode is an excessive focus on the product. I can’t tell you how many times I’ve seen well-meaning salespeople put their product front and center in an initial pitch, going on and on about its many features and benefits without even stopping once to check if it’s what the customer really needs.

Again, I can understand how salespeople fall into this trap. If you’re excited about the product you sell and you truly believe in its potential to add value, it’s only natural to get a little carried away when telling a prospect about it.

However, to move from that initial conversation to a closed deal, it’s essential to balance a healthy focus on the product with a focus on the people. As Sales Coach Nick Kane explains, “Unless your product is revolutionary, like the first smartphone, it’s only marginally different from the competition. On its own, there’s not much to distinguish it from the others.”

Kane continues, “That’s why a product-focused strategy is limited. Instead, even the best products need a sales strategy centered around the people who sell.”

If you focus too much on the product, you’re liable to send the message that all you care about is selling. Instead, it’s critical to demonstrate that you’re truly invested in understanding and delivering what the customer actually needs.

3. Forgetting the Basics of Sales Calls

As a sales professional, I believe strongly in the importance of ongoing learning and development. It’s essential to stay up to date with the latest trends, from the impact of AI tools to industry shifts that may be affecting your customers. That being said, it’s also vital to remember the basics.

Specifically, one of the most common bad sales behaviors I’ve witnessed from otherwise high-achieving salespeople is to completely forget the basics of how to conduct an effective sales call. For example, I’ve seen sales reps fail to establish an agenda, jump right to a demo without getting buy-in first from the prospect, and go through an entire call without asking a single question.

Basic errors like these can make it seem like the salesperson is just there to pitch a product, rather than to learn about the customer’s needs and establish a relationship with them, ultimately making them come across as self-interested and untrustworthy.

As Weinberg puts it, “You don’t earn a seat as the expert or consultant at the customer’s table when you’re viewed as a pitchman better suited to doing infomercials than to helping your customer address business challenges.” Forgetting the basics of sales calls is a great way to sink a potential client relationship before it even begins.

4. Ignoring Objections

Many of us like to focus on the positive — but when it comes to sales, ignoring the negative is not a recipe for success. On the contrary, it’s impossible to address prospects’ objections to your offering if you don’t know what they are.

While it may feel a little uncomfortable, asking probing questions to better understand why a customer is hesitant to move forward is a key part of a good sales rep’s job. Indeed, sales coach Jeet Vadher points out that “addressing objections effectively helps build trust, as it shows that you’re listening to their concerns and offering thoughtful, informed solutions.”

Vadher further notes that “when you handle objections with insight and clarity, you reinforce your role as a problem solver, not just a seller.” At the end of the day, Vadher argues that “objection handling is not just about closing the deal. It’s about creating an ongoing relationship with your customer.”

Source

While it may be tempting to bury your head in the sand and refocus the conversation on the positive, being willing to discuss customers’ objections is a necessary step to overcoming them.

If you’re still not sure, just ask yourself: Do you want to know what it will take to get your customer to buy? Or would you rather they just walk away without any explanation? If you ignore the prospect’s objections, you’ll have no way to figure out what it will take to turn their no into a yes.

5. Never Saying No

You may have heard that the customer is always right — but that doesn’t mean the salesperson can never say “no.”

On the contrary, one of the worst sales behaviors I’ve seen is an unwillingness to push back on a customer. While it’s always important to be respectful, it’s also essential for salespeople to know how to refuse an unreasonable request or how to suggest an alternative to an uninformed customer.

In some cases, this may mean turning down a prospect entirely. For example, Entrepreneur and Sales Expert Michelle Weinstein speaks eloquently to the importance of saying no when a customer isn’t a good fit, sharing, “I know that the temptation to accept every client that comes your way is high, especially when you find yourself in a financial pickle. You’ve got bills to pay. Rent is due. And you don’t have another deal in sight. It’s scarcity mentality at its worst, and it can shake you to the core. But believe it or not, if you accept a client out of sheer desperation, you might be setting yourself up for an even bigger disaster than not making rent this month.”

In other cases, a prospect may be a good lead, but it’s still important to set healthy boundaries and learn to say “no” when they ask for a last-minute demo, demand yet another discount, or make other unreasonable requests. As entrepreneur Theresa Delgado explains, “Whether it’s declining unrealistic demands, setting boundaries, or redirecting your priorities, knowing how to say no tactfully and professionally is crucial for long-term success.”

Good Sales Behaviors to Practice and Nurture

So far, we’ve covered what not to do. But what are the good sales behaviors that set top-performing salespeople apart? Below, I’ll go through some of my favorite expert-approved good sales behaviors to practice and nurture.

1. Qualifying Leads

In my experience, one of the most critical behaviors of a successful salesperson is qualifying leads. Rather than simply assuming that anyone who gets on the phone with you is a potential customer, it’s essential to take the time to qualify each prospect you connect with.

Indeed, as Jack Bowerman, senior marketing manager for the prospecting platform Surfe, argues, “Qualifying leads effectively makes sure you’re investing your time in the right prospects — which improves the overall success rate of the deals you close.” In other words, if you don’t qualify your leads effectively, you’re likely to waste a lot of time talking to the wrong people.

2. Building Relationships

Of course, sales isn’t just about determining who is qualified to be a potential customer. Once you’ve qualified a lead, it’s essential to start cultivating a relationship with them.

Building relationships starts with building rapport. That means demonstrating curiosity about the person you’re talking to, asking questions, and making the effort to learn more about them and their challenges. Aja Frost, HubSpot’s director of global growth, notes that “to build rapport, sales reps typically practice active listening to successfully uncover prospects’ needs and form a relationship.”

Source

In addition to active listening, sales reps can build strong relationships by following best practices such as fostering trust by mirroring the prospect’s body language and speech patterns, demonstrating empathy by sharing common experiences, and emphasizing their dedication and expertise by researching the lead and their industry in advance.

3. Demonstrating Value

In his comprehensive overview of the concept of value selling, Founder and CEO of the Harris Consulting Group Richard Harris takes the controversial stance that “sales hasn’t changed since the days of merchants trading their wares in Mesopotamia.”

How can that be? Harris clarifies, “Sure, we may have more (powerful) sales tools and new methodologies. We’re even starting to harness AI to predict buyer behavior and respond to it more quickly. But, strip away all the nuanced strategy and tech, and sales remains simple: Identify a need and show how your product or solution meets that need while delivering positive economic impact.”

At its core, selling is all about demonstrating value. Whether you’re selling a product or a service, a B2B offering or mass market B2C merchandise, I’ve learned that making a sale always boils down to demonstrating the value you can add to your customer.

To do so, Harris recommends doing your research before every call to ensure you’re prepared to ask probing questions. Then, during the conversation, he suggests prioritizing active listening and empathy, to help you understand the problems the prospect is facing. And finally, Harris reminds us to “avoid the hard sell:” Rather than desperately trying to close the deal at all costs, great salespeople work together with their prospects to identify the best way to add value.

4. Serving Customers

Hand in hand with demonstrating value is serving the customer. In my experience, great salespeople know that selling isn’t just about closing deals — it’s about truly prioritizing the needs of the customer throughout their customer journey.

As Sales Expert Amy Bradley explains, “Sales success hinges on more than just transactions. It’s about creating lasting connections with your customers.”

To create those lasting connections, Bradley recommends several strategies, including establishing your expertise and credibility, following up consistently, and customizing your communications for each prospect. By serving the customer in these ways, salespeople can build relationships that are genuine, sustainable, and truly mutually beneficial.

5. Leveraging AI

Finally, in recent years, I’ve seen AI transform from just another hype cycle to an incredibly impactful sales tool. That’s why no list of good sales behaviors would be complete without including leveraging AI and automation.

This can take many forms. From a tool that helps automate prospecting to AI-generated call scripts and emails, there are countless ways in which today’s top salespeople have begun to use AI to save themselves time and boost productivity.

In fact, according to HubSpot’s latest State of AI report, nearly half of sales professionals currently use some form of AI at work, and more than three out of four believe that by 2030, most people will use AI or automation to assist them in their jobs.

​​

Source

As such, it’s hardly surprising that University of Alabama at Birmingham professor Colleen McClure believes that “AI technologies are helping to augment every phase of the sales process, especially as it relates to complex B2B sales.”

AI is making a major impact on the world of sales — so it’s imperative for today’s salespeople to learn to leverage these new tools and technologies.

How to Monitor and Improve Sales Behaviors in Your Team

Knowing what to do (and what not to do) on an individual level is important. But what does it take to monitor and improve sales behaviors on a team? There are no shortcuts or one-size-fits-all solutions, but I’ve found that the strategies below can help managers support their teams, ultimately boosting both engagement and productivity.

1. Set clear expectations.

Your team can’t read your mind. If you want your sales reps to follow certain processes, hit certain targets, or engage in certain behaviors, it’s vital to tell them.

That means setting clear expectations and quantifying those expectations whenever possible. For example, don’t just tell people to follow up with prospects “in a timely manner.” Instead, specify exactly how quickly you expect them to follow up, perhaps even with tactical guidelines around what should go into those communications.

Michelle Richardson, Vice President of Sales Performance Research at the Brooks Group, argues that “​​in order for the members of your sales team to be successful, they must know exactly what defines ‘success’ in your organization.”

As a result, she continues, “it’s critical for sales leaders to establish and communicate expectations with their sales reps early on, and enforce them on a continual basis.” To begin to improve sales behaviors on your team, it’s essential first to define the behaviors that you expect people to engage in.

2. Target specific behaviors for improvement.

Next, once you’ve defined key expectations for your team, you can begin to target specific behaviors for improvement. After all, as President and CEO of ValueSelling Associates Julie Thomas wrote in a recent Forbes article, “To propel your sales team toward accelerated results, you must initiate behavior change.”

Importantly, I’ve learned that it’s really vital to isolate specific behaviors to focus on. While it may be tempting to try to optimize everything all at once, real progress usually happens one step at a time. So, rather than trying to push your sales team to totally overhaul their approach, choose just one or two specific behaviors to target for improvement.

For example, if you’re interested in improving customer acquisition rates, you may opt to focus on behaviors such as prospecting, setting up introductory calls, or adding new leads to the pipeline.

Then, for each of these behaviors, identify exactly how you’d like your team to improve. And remember: This may be different for different sales reps. Perhaps you’d like one person on your team to prioritize increasing the number of new leads they add to the pipeline, while another might benefit more from focusing on scheduling more intro calls.

“Ultimately,” Thomas concludes, “by prioritizing behavior change and investing in the necessary support structures, companies can unleash the full potential of their teams and drive sales success.” Being strategic — and specific — about the behaviors you want to improve will help increase the chances that you achieve your goals.

3. Track key performance metrics.

Of course, you can’t just say you want to improve a certain behavior and expect it to happen. To drive lasting progress, sales leaders must identify quantifiable metrics associated with those behaviors, and then track those performance metrics consistently.

Thomas speaks to the importance of metrics in another recent article, sharing, “Measuring both sales behaviors (leading indicators) and sales results (lagging indicators) is important. Many organizations only set goals that focus on lagging indicators, and this narrow focus hinders enablement’s ability to demonstrate its accomplishments.”

In other words, effective sales leaders recognize the importance of tracking key performance metrics on an ongoing basis, making sure to focus on both sales results and the sales behaviors that drive those results.

4. Share feedback regularly.

Finally, I’ve learned that when it comes to helping sales teams improve their performance, feedback is everything. That means celebrating achievements, but it also means being clear when people fall short of targets.

While some managers are hesitant to share constructive criticism, research from the Center for Sales Strategy found that 91% of salespeople report that they want more learning and development opportunities. In other words, sales reps are hungry for feedback — it’s up to their leaders to provide it.

As sales and marketing expert Dan Lever explains, “No matter how effective your sales training is, it’s unrealistic to expect your sales reps to achieve their best without some form of ongoing sales coaching. Achieving sales excellence requires continuous development and feedback.” Great sales leaders know that the most valuable thing they can offer their team is regular, open feedback.

Don’t Let Bad Sales Behaviors Hold You Back

As I wrote this article, I was consistently impressed with just how powerful good sales behaviors can be — and just how much harm bad sales behaviors can cause. From getting stuck in reaction mode to never saying no, bad sales behaviors can seriously hinder salespeople’s ability to succeed.

Luckily, my research also illustrated the many good sales behaviors that can help professionals thrive. In particular, I was struck by the importance of classic behaviors, such as demonstrating value and serving customers, as well as newer trends, like leveraging AI throughout the sales process.

At the end of the day, I believe that it’s the responsibility of sales managers to monitor and improve sales behaviors on their teams. By setting clear expectations, targeting specific behaviors, tracking performance metrics, and sharing feedback regularly, sales leaders can help their teams reduce harmful sales behaviors and cultivate the good sales behaviors that will help them (and their organizations) succeed.

Why are revenue targets so hard to hit? According to a 2023 survey of over 450 sales leaders, 91% of their teams missed quota that year. And even with revenue up in 2024, reps are still struggling to meet their sales goals.

To shed some light on the matter, I’ll offer my personal insights on why teams are missing their targets. In addition, I reached out to other sales experts to hear what they had to say about setting and meeting revenue goals so you can take home some best practices from their experience.

Table of Contents

• What are revenue targets?
• Why Teams Miss Revenue Targets
• How to Set Revenue Goals
• How to Meet Revenue Targets

A revenue target takes into account what you made in a prior period (say, last year) and aims to increase it by a specific percentage (for example, 10-20% more than last year’s actual revenue). The same logic can be applied to annual recurring revenue (an ARR target), if your company is subscription-based.

But while defining targets is a standard part of business, without a clear plan to execute them, revenue targets are easily missable.

Why Teams Miss Revenue Targets

Here are the reasons many companies miss their annual revenue targets, from my perspective.

1. Getting stuck on YTD sales.

This begins at the sales rep level but can become an enterprise-wide problem when sales staff, from reps up to SVPs, focus on their year-to-date (YTD) positions against quota. However, the only benefit of focusing on YTD is to realize how much of the mountain is left to be climbed.

Salespeople would be better served to look ahead. Projecting a sales cycle ahead of time gives sellers a better chance of making their numbers. It’s relatively straightforward to do — simply take your current pipeline, multiply the gross at each milestone times your historical close rates (actual or estimated), and determine if a seller can reasonably expect to be YTD one sales cycle ahead.

Let’s say your average sales cycle is three months. Having just finished the first quarter, you’d like the projection for the coming quarter, plus your YTD achievement for the completed quarter, to equal half your annual quota. If there’s a shortfall, there should be ongoing efforts to find and bring new opportunities into your funnel.

Ideally, these calculations should be done every month, and using a forecasting software can simplify this step.

2. Misaligned sales activities.

Companies spend inordinate amounts of time and money on training sellers on products. But mid- to low-level buyers have the tools to evaluate offerings on their own — in fact, 96% of prospects do their own research before talking to a human sales rep. On top of that, B2B buyers are wary of sellers trying to influence their decisions.

Few executives have the time or desire to go into details about products. But A-game players can uncover executive business goals and focus on how offerings can be used to achieve them.

In my mind, the most important thing competent B2B sellers bring is an understanding of enterprise-wide benefits that can be realized through the use of their offerings.

If sellers can articulate benefits and discuss how the company’s financial picture can improve, the chances of making sales are higher. I wish vendors would look at their product training costs and reallocate some funds to make their sellers better business consultants.

3. Confusing activity with progress.

B and C sales players typically initiate opportunities at low levels, view everyone as a buyer, lead with product, don’t gain access to key stakeholders, fail to uncover business issues, and don’t establish value with compelling costs vs. benefit analyses.

They will make numerous calls (activity) but aren’t gaining access to stakeholders (progress). They often provide quotes or proposals (activities) far sooner than they should. Sadly, many of these sellers believe opportunities are much farther along than they actually are.

Make sure your sales team knows the difference between activity for the sake of activity, and activity that will actually move a deal forward at the right pace and right time.

4. Relying upon seller opinions when grading pipeline health.

Some sellers have unbridled optimism when it comes to their pipeline health — whether or not it’s based in reality.

The antidote to relying upon seller opinions? Implement as many verifiable buying milestones as possible to maintain good pipeline management.

Here’s an example I like: Within the CustomerCentric Selling® sales methodology, the first significant milestone is qualifying a champion (someone who can provide the seller access to other key players). This is one of many measurable activities that a manager can use to grade the opportunity objectively — and tie to a milestone achievement.

5. Defining only one set of milestones.

A common mistake I see companies make is defining sales pipeline stages for major opportunities and expecting sellers to use them for each and every deal.

Sellers working on smaller opportunities soon discover they are being asked to enter far more data and take many more steps than are warranted in the scenario. In such cases, sellers rightfully complain or refuse to adhere to the milestones.

Most organizations have at least five or six processes that warrant unique milestones:

• Add-on business
• Renewals
• Services
• Maintenance
• SMB sales
• Large accounts
• National accounts
• Etc.

First, I recommend you define your most complex sale, but then “water down” the steps needed as opportunity size and complexity decrease.

Transaction milestones should meld the prospect’s buying process with the vendor’s selling process. Failing to incorporate buying steps means forcing your sales process onto the buyer — which is not a very customer-centric thing to do.

How to Set Revenue Goals

The first step to hitting your revenue targets is setting appropriate goals.

“Meeting sales targets highly depends on how the targets are set,” says Alex Zlotko, CEO of Forecastio, a tool for sales leaders to track and forecast sales performance.

“If sales targets are not reasonable or attainable from the start, they will not be met regardless of how well a sales rep performs.”

With that in mind, here are five steps for setting attainable revenue goals.

Evaluate the current reality.

It’s not uncommon for teams to set goals based on optimism, overestimation, or ambition without considering the reality of their past performance or the current market. But setting realistic, achievable, and clear goals that are based on data is the foundation for meeting your targets.

“I once worked with a company that raised its revenue goal by 40% overnight without adding more resources. Predictably, they missed it by a mile,” offers Danny Ray, founder of PinnacleQuote.

I asked Zlotko to tell me more, and here’s what he had to say: “Setting realistic and achievable sales quotas is one of a sales leader’s key responsibilities. However, many sales leaders still struggle with this task, relying on gut feeling or intuition rather than real data when setting targets. Sometimes, sales targets are simply set by senior management (CEO) without discussion. This is a major issue in many companies.”

Align with business and team.

Next on the list is to align your revenue goals with your business objectives, making them specific, measurable, and tied to how you want to see your company grow. In addition, make sure your sales team understands the importance of their KPIs.

“I align revenue goals with broader business objectives, whether it’s entering new markets or scaling existing operations,” Jayanti Katariya, CEO of Moon Invoice, tells me.

“A critical step is dividing these goals into achievable, quarterly targets while ensuring the team understands how their KPIs link back to the overall revenue plan.”

Break big revenue targets into smaller goals.

While dividing annual goals into quarterly and monthly ones is important, so is breaking down big revenue goals into smaller, more actionable ones. This increases the likelihood of meeting the larger goals, and also lets your reps build confidence with incremental wins.

Stephen Do, founder of UpPromote, says, “If the target is $1 million for the quarter, we’ll look at how much of that should come from new customers, upsells, or partnerships. This keeps the team focused on specific levers they can pull instead of getting overwhelmed by the bigger picture.”

Forecast based on historical data.

Data-driven forecasting is key to setting realistic revenue goals, drawing from your company’s historical performance data and also identifying areas for growth within the market.

Zlotko gave me a list of factors to consider.

“For short-term targets like a month or a quarter, take into account:

• Past team performance and recent trends (sales volume, quota attainment, win rate, and pipeline growth dynamics).
• Current pipeline. Assess deals by stage, amount, and close date for the period in which you want to set targets.
• Sales forecasts. Build the most accurate forecasts possible, preferably using multiple forecasting methods, including statistical models, rather than relying solely on data entered by sales reps (deal probability or forecasting category).

For setting long-term targets, I highly recommend using what-if modeling to create different scenarios and estimate what is needed for each.”

Among the factors to consider for annual goals are team capacity to hit targets, lead generation requirements, territory capacity, and market dynamics.

Aim for accountability and collaboration.

While setting a revenue target is often top-down, discussing the targets with sales reps to form a common objective can generate accountability and keep the team focused.

Gauri Manglik, CEO and co-founder of Instrumentl, describes an example of this best practice in action:

“When I led a sales team where we set quarterly revenue targets that were both ambitious and attainable,” she says, “we made sure to involve the team in the goal-setting process, allowing them to provide valuable insights and feedback. This not only increased their ownership of the targets but also fostered a sense of accountability and motivation.”

How to Meet Revenue Targets

Setting revenue targets is one thing, but what about meeting those goals?

“Ultimately, hitting revenue targets is a mix of strategy, execution, and adaptability,” says Stephen Do. “You need to set clear, data-driven goals, keep the team aligned, and stay flexible enough to pivot when necessary.”

Here are some strategies that stood out to me during my conversations with sales leaders.

Prioritize Communication.

A revenue target isn’t only the responsibility of sales. Marketing plays a role, as well as operations, and communication between all teams is a must to ensure everyone knows what’s expected of them and how they contribute to the overall goal.

Pro tip from Stephen Do: “Everyone on the team has to know their role in hitting the goal. If someone’s working on product updates, they need to understand how those updates will drive revenue — whether it’s improving retention or increasing conversions.”

Motivate your sales team.

Reaching revenue targets has to do with high quota attainment, which means each rep hitting their individual goals is key. “If a sales team isn’t hitting numbers, it’s usually because they lack clear direction, the right tools, or motivation,” says Danny Ray.

Pro tip from Jayanti Katariya: “Incentivizing sales teams through tiered performance rewards also ensures sustained motivation.”

Monitor and review.

There are a whole host of things to monitor along the way, from data to teams, in order to track progress and strategize accordingly.

Apart from sales dashboards and CRM, Alex Zlotko shares further insights. Here are his tips for this in his words:

• Monitor the pipeline regularly and identify risky deals. As soon as risky deals appear, take action.
• Track slipping deals, especially those that can impact targets significantly. If a close date is changed or a deal is pushed to a future period, you must know about it and react immediately.
• Monitor both team and individual performance, especially changes in win rates, sales cycles, and pipeline stage conversion rates. Spot negative trends early and address issues.
• Keep an eye on pipeline coverage daily. Is there still enough pipeline value to hit your targets? If not, what can you do? Generate more leads? Reactivate stagnant or stalled deals? Increase deal amounts?
• Conduct effective pipeline reviews and one-on-one meetings with your sales reps.

Be ready to adapt.

A big part of meeting your revenue goals will be adjusting to changes as they occur. It’s critical to be agile and able to pivot when things don’t go as planned.

Pro tip from Stephen Do: “We’ve learned to review our progress weekly, not just at the end of the quarter, so we can make tweaks before small issues become big ones.”

Hitting the Target

Whether you’re just starting out or a veteran of sales, setting and meeting revenue targets will always be an iterative process. And while it’s easy to see sales goals as elusive, I think the key is in getting used to predicting, monitoring, and changing gears — so that the next time you set revenue goals, they’ll seem less like a moving target.

Financial forecasting might seem like a daunting topic. I get it — it’s easy to feel overwhelmed by the idea of making predictions in such an unpredictable world. But from my experience, mastering financial forecasting can truly transform the way you approach business decisions.

When you’re able to make accurate projections, you’re not just reacting to changes. You’re proactively steering your business toward sustainable growth. It’s essentially about creating a roadmap that lets you anticipate challenges, seize opportunities, and make smarter financial choices in real time.

In this article, I’ll explore the concept of financial forecasting using layman’s terms. I will explain some popular financial forecasting models and give a review on some of the best financial forecasting software solutions on the market.

Table of Contents

• What is financial forecasting?
• Financial Forecasting Models
• Financial Forecasting Methods
• How I Do Financial Forecasting
• Financial Forecasting Software

Financial forecasting is often conflated with the other key financial planning processes it generally informs — namely, budgeting. Though the two activities are often closely linked, I think it is important to clearly differentiate between them.

Forecasting vs. Budgeting

The difference between a financial forecast and a budget boils down to the distinction between expectations and goals. I like to remember forecast details as something a business can realistically expect to achieve over a given period.

Forecasting represents a reasonable estimate of how a company will likely perform — based on current and historical financial data, broader economic trends, foreseeable factors that might impact performance, and other variables that can be viably accounted for.

How to Create Accurate Sales Forecasts in 2024

A budget, on the other hand, is the byproduct of a financial analysis rooted in what a business would like to achieve. It’s typically updated once per year and is ultimately compared to the actual results a business sees to gauge the company’s overall performance.

Now that I have given you an overview of the topic, let’s take a look at some of the most popular financial forecasting models.

Financial Forecasting Models

1. Top-Down Financial Forecasting

Top-down forecasting is a way for a company to make financial predictions by starting with broader market information and working down to estimate its own revenue.

I like how simply Erik Lidman, CEO & Founder at Aimplan, explains top-down forecasts. In his LinkedIn post, he writes that top-down forecasts:

• Are made by leadership and finance teams.
• Tend to be more aspirational and aggressive.
• Start with the end goal in mind, then reason down to forecast key business drivers like pricing, customers, promotion impact, etc.

I think this approach is pretty simple. The company begins by looking at the total amount of money its entire market makes. Then, it calculates how much of that total it thinks it can earn. The calculation is often done with the help of tools such as fp&a software, which allows you to collect all the data you need.

Top-Down Financial Forecasting Example

Imagine a company that is part of a market that makes about $1 billion each year. If the company believes it can capture 2.5% of that market, a top-down forecast would predict it could make $25 million in the next year.

Benefits of Top-Down Forecasting

• Offers a streamlined approach for larger, established businesses with diverse revenue sources rather than a concentrated, product-level forecast.
• Viable forecasting avenue for early-stage companies without extensive financial data.

Drawbacks of Top-Down Forecasting

• Hastier and more superficial in comparison to other, more granular forecasting methods.
• Seen more as a starting point than a concrete projection.
• Does not account for local factors that can influence demand.

2. Delphi Forecasting

The “Delphi” method is named after an ancient Greek city called Delphi, where people would go to ask a wise oracle named Pythia for advice.

In a similar way, the Delphi forecasting method is all about getting advice from experts to help a business make predictions.

Ivan Svetunkov, an expert in demand forecasting, explains Delphi forecasting as a method that sidesteps probability. He explains it as follows:

“Delphi method can be used for long term forecasting, but typically focuses on forecasting general tendencies (structure) in the data, ignoring the uncertainty around it.”

Source

To explain Delphi forecasting, I have written a simple explanation of how it works:

A business sends multiple rounds of questionnaires related to its finances to a group of experts. After the first round of answers comes in, everyone gets a summary of what the others said.

This way, each expert can see the group’s thoughts and adjust their answers in the next round if they want. The goal is to go through a few rounds of this back-and-forth until the experts agree on predictions the business can use.

Delphi Financial Forecasting Example

A company sends a questionnaire to be filled out by experts. After everyone submits their answers, they all get a summary showing what the other experts think about the company’s financial future.

Seeing everyone else’s thoughts can help each expert think in new ways, so they fill out a new questionnaire with updated ideas. This process repeats, with each round bringing the experts a bit closer in their predictions. Finally, when most experts agree, the company uses this shared view to make its financial forecast.

Benefits of Delphi Forecasting

• More objective than conventional, in-house forecasting.
• Contributions are anonymous, so respondents can answer candidly.

Drawbacks of Delphi Forecasting

• Doesn’t allow for a productive, open dialogue like a face-to-face meeting would.
• Response times can be long or unpredictable, prolonging forecast delivery.

3. Statistical Forecasting

In my opinion, statistical forecasting is just a fancy way of saying “making predictions using numbers and data.” It’s simply a type of forecasting where I can look at data from the past — like sales numbers or other facts — and use it to guess what might happen in the future.

Statistical Financial Forecasting Example

Let’s say my company wants to know how much money it might make over the next few months. One way we could do this is by using the “moving average” method. My company would look at how much money it made each day over the last 100 days, then take the average of those numbers. (I talk more about moving averages in the section below.)

By using this average, my company can make a good guess about how much it might earn over a similar period coming up.

Benefits of Statistical Forecasting

• It rests on a more solid basis than other methods.
• It can be more straightforward than other methods — provided you have the right data.

Drawbacks of Statistical Forecasting

• Certain methods that fall under this umbrella can provide relatively estimates relative to other financial forecasting models.
• Companies without extensive historical data might not be able to produce reliable statistical forecasts.

4. Bottom-Up Financial Forecasting

Bottom-up financial forecasting is just the opposite of top-down forecasting. In this approach, a company starts by looking at the details of what’s happening with its customers or products and builds to a bigger picture of its future revenue.

Again, I will quote Erik Lidman for his simple explanation of bottom-up financial forecasting. Bottom-up forecasts:

• Build forecasts from the ground up, project by project.
• Come from sales, marketing, and other frontline teams.
• Tend to be more conservative, based on realities on the ground.

Bottom-Up Financial Forecasting Example

Let’s say a company wants to predict how much money it might make next year. It would start by looking at how many products it sold last year and decide how much it plans to charge for each one this year. Then, by multiplying these two numbers, the company gets an estimate of its total sales.

Of course, real forecasting is a bit more complicated than that. A company would usually look at other details too, like how many customers they expect to have or how likely those customers are to stick around. This way, they get a more accurate prediction by building up from the ground level.

Benefits of Bottom-Up Forecasting

• The model allows for more detailed analysis than most others.
• It offers more room for input from various departments.

Drawbacks of Bottom-Up Forecasting

• Any errors made at the micro-level can be amplified to the macro-level with this model.
• A thorough bottom-up forecast can be time-consuming and labor-intensive.

5. Hierarchical Financial Forecasting

Put in simple terms, hierarchical financial forecasting is like creating a roadmap for predictions by organizing data into different levels or categories. Imagine it as a family tree for financial projections, where each branch represents a category, and smaller branches represent subcategories within it.

Source

This method is useful because it combines both big-picture (top-down) and detail-focused (bottom-up) forecasting. By doing this, you get a more complete and accurate forecast, capturing trends at each level — overall and specific — making it easier to make smarter decisions, like what to stock up on or where to invest resources.

Hierarchical Financial Forecasting Example

For example, if you’re forecasting sales, you might start with a top category, like “clothing.” Then you break it down to “men’s wear” and “women’s wear.” You can go further, breaking “men’s wear” into “shirts,” “pants,” and “ties.” This lets you see not only the big picture (overall clothing sales) but also specific details (like how many black ties might sell within men’s wear).

Benefits of Hierarchical Forecasting

• Combines both the big-picture and detail-focused forecasting models.
• Provides a more complete and accurate forecast than other models.

Drawbacks of Hierarchical Forecasting

• This model can be complex since it requires lots of data.
• It can also be time-consuming.

Financial Forecasting Methods

1. Straight Line

Straight-line forecasting is one of the simplest ways a business can predict its future finances. It’s based on basic math and tends to give rough estimates, unlike some more complicated methods that provide more detailed projections.

In straight-line forecasting, a company looks at how much it has grown in the past and uses that information to predict future growth. It’s usually used when a business expects to see steady, consistent growth over time.

Let’s assume my business has been growing at a steady rate of 5% each year for the last four years. This way, I can use the same 5% growth rate to predict my revenue for the next few years. It’s a simple way to make projections based on past performance.

The straight line forecasting method does not take into consideration the fluctuations in the market and other factors that could impact growth, such as new competitors or shifts in the economy.

2. Simple Linear Regression

Simple linear regression is a way for businesses to make predictions by looking at how two things are connected.

Imagine you have one thing you can control or measure, like the country’s GDP and another factor you want to predict, like how much money the company might make. By studying the relationship between these two, the business can make a good guess about future revenue.

So, if GDP goes up or down, the company can see how this change might affect its earnings.

If you wish to get a thorough step-by-step guide, I recommend reading this article on how to forecast sales using linear regression.

3. Multiple Linear Regression

Simple linear regression is a good way to make predictions, but it doesn’t always give us an accurate picture of financial performance because there are usually many things affecting the outcome, not just one factor.

This is where multiple linear regression comes in. As the name suggests, it looks at more than one factor to make a prediction.

Source

Instead of just focusing on how one thing — like the price of a product — might affect a company’s finances, multiple linear regression looks at two or more different factors at the same time to get a more accurate picture of what might happen.

4. Moving Average

Moving average forecasting is a method often used to track the direction of a stock’s performance, but businesses can also use it to predict their own financial results.

The idea is simple: I take the average of a set of numbers from the past, like sales or revenue, and use that average to estimate what might happen in the future.

I like what Nicolas Vandeput, a person who does demand and supply planning, writes about using moving averages:

“Don’t compare your forecasting accuracy to industry benchmarks. They’re irrelevant.

“Instead, compare your forecasting accuracy against simple statistical benchmarks such as moving averages. Moving averages are a fair benchmark: They will deliver higher (or lower) accuracy depending on the product, period, and market.

“That’s perfect. Also, they’re free.”

The moving average method works best for looking at short-term trends, like weekly, monthly, or quarterly changes, rather than long-term projections. It helps businesses see patterns and make educated guesses about what’s coming next.

How I Do Financial Forecasting

1. Define my purpose for using a financial forecast.

To get the most out of a financial forecast, I like to know why I’m using it in the first place. I start by asking myself questions such as:

• What am I hoping to learn and take away from its results?

• Am I trying to gauge the company budget?
• Am I trying to reach a certain goal or threshold for product sales?

Only when I have a clear intent behind my financial forecast will I be able to have a more concise and clear result to search for once I begin.

2. Gather historical data.

To track the progress of my financial forecast, I should have a good idea of my current and past finances. Here, I give myself time to analyze the historical financial data and records, including:

• Revenue and losses.
• Equity and liabilities.
• Fixed costs.
• Investments.
• Earnings per share.

My forecast will only be as accurate as the information I collect, so I try to get as much relevant data as possible for better results and understanding.

3. Set a time frame for my forecast.

I decide how far into the future I need the documentation for in order to evaluate a business’s financial performance. This can look like weeks, months, quarters, or even years of data collection.

It’s most common for a business to conduct a forecast over the course of a fiscal year, but it can be unique for every business.

4. Choose a forecasting method.

I choose from one of the four financial forecasting methods mentioned above. Before choosing one, I see if it aligns with my previously declared purpose and goals.

5. Monitor and analyze forecast results.

As the financial forecast delivers new data, it is time to monitor and analyze the data differently. Some different ways that data can be used are as follows:

• Identify potential issues. Monitoring and analyzing financial results can help a business identify potential issues before they become more significant problems.

For example, if expenses are higher than anticipated, a business can identify the cause and take corrective action to prevent it from negatively impacting financial performance.

• Measure progress towards goals. A financial forecast provides a business with financial goals and expectations.

Weighing financial results against these goals enables a business to measure its progress toward achieving them. This can help the business identify where it is falling short and adjust to get back on track.

• Manage cash flow. Monitoring and analyzing financial results can give a business insight into its cash flow situation.

By understanding how much cash is coming in and going out, a business can make smarter decisions about budgeting and spending.

And it doesn’t have to be a tedious task to analyze your financial data — thankfully, there are plenty of forecasting, decision-making, and financial-planning tools available for this purpose. Let’s go through some of my favorites. To give you an overall view of the software, I have also included comments from users who have actively used each of the software.

Financial Forecasting Software

1. Sage Intacct

Pricing: Contact for pricing

Best for: Collaboration

Sage Intacct is a multifaceted accounting and financial planning software with an accessible interface and a suite of features that can streamline your financial forecasting time by over 50%.

The platform’s automated forecasting resources effectively eliminate the stress, legwork, and room for error that often come with spreadsheet-based planning.

What I like: Sage Intacct separates itself from similar applications through its accessibility and room for collaboration. The software is particularly user-friendly and offers a singular, centralized solution for virtually any stakeholder within an organization to easily contribute to and make sense of financial projections.

Comments From Users

• “The automations in the AP module and in the General Ledger can save so much time and energy. I really appreciate the ease of import in general with Sage Intacct — and it goes for almost everything, JEs, Bills, Bank Transactions.” — Courtney D.
• “It is not easy to integrate with outside programs. You have to go through a complicated process anytime you want to integrate something into Sage Intacct.” — Stan F.

2. PlanGuru

Pricing: Plans start at $83/month.

Best for: Pure financial forecasting

PlanGuru is a specialized financial forecasting tool that offers 20 different forecasting methods, allowing you to project financial outcomes for up to 10 years. What’s unique here is how easily you can bring non-financial data into your forecasts, which means you can consider factors beyond pure financials.

Plus, its scenario analysis feature gives you the power to explore the impact of potential events on your business. For most small and medium businesses, PlanGuru offers flexible pricing that makes it accessible. I suggest starting with the basic plan at $83 per month, then adding users as needed for an additional $25 per user.

What I like: Unlike some broader accounting platforms that include forecasting as just one of many features, PlanGuru is specifically built for financial projections.

It’s built to support strategic planning with its range of 20 forecasting methods and other features that help you look ahead. If you’re searching for a budget-friendly platform focused solely on financial forecasting, PlanGuru is worth a closer look.

Comments From Users

• “Unlike other softwares that have you speak with chatbots, Plan Guru has real people with a depth of knowledge that makes the integration of our financial data into the software a breeze.” — Verified User at G2
• “One of the best features is how quickly the software reacts to updates and changes and imports the data from our accounting software. Excel reporting can be a little tricky because of how precise it needs to be for the data to import.” — Jill S.

3. Workday Adaptive Planning

Pricing: Contact for pricing

Best for: A dynamic range of forecasting options

Workday Adaptive Planning offers a powerful blend of accessibility and functionality in financial forecasting, making it adaptable to a variety of business needs.

With its capability to integrate real-time financial and operational data, the software allows building and comparing different what-if scenarios that reflect accurate, effective projections.

It’s essentially a software that I can use to forecast over any timeframe, whether daily, monthly, quarterly, or long-term, ensuring flexibility no matter the planning timeframe.

What I like: One of the standout features of Workday Adaptive Planning is its support for both detailed bottom-up and top-down forecasts, which gives businesses of all sizes a tailored approach to financial projections.

Whether I’m creating forecasts based on executive targets or operational data from the ground up, this tool enables precise, impactful insights. If you’re looking for forecasting without compromising on accuracy, I recommend Workday Adaptive Planning as a tool well worth considering.

Comments From Users

• “The best part about the software is being able to trust the data.” — Kimberly F.
• “We have been able to quickly adopt and implement the solution, provide the flexibility for multiple scenario modeling and unify our global reporting. The lack of file structure through the menu bar makes navigating the models a little difficult” — Scott L.

4. Limelight

Pricing: Contact for pricing

Best for: A familiar, Excel-like experience

Limelight is an integrated, web-based financial planning tool that provides businesses with a centralized solution for almost all of their forecasting needs. The software is designed with finance and accounting teams in mind. It provides powerful automation and seamless data integration to simplify the forecasting process, all while maintaining accuracy and quality.

What I like: If you’re like me and have spent a lot of time using Excel, you’ll appreciate how Limelight’s user experience is designed to mirror it.

This makes it especially easy for CFOs, controllers, budget managers, and other finance professionals to jump in and start using it without a steep learning curve.

If you’re looking for a forecasting tool that’s both powerful and user-friendly, I definitely recommend considering Limelight.

Comments From Users

• “The best part about the software is their customer service and care. All implementations come with challenges, staffing changes, scope hiccups, etc. The client team at LL were proactive, engaged with our project manager what felt like daily, and the project felt on track the entire time.” — Jason W.

Which financial forecasting model should you run?

Financial forecasting is absolutely crucial for effective financial planning, and I can’t stress that enough. Without a clear understanding of what lies ahead, it becomes incredibly difficult to navigate challenges, set realistic goals, or even pinpoint areas of your business that require special attention.

But what financial forecasting model is the best one for you to run?

Top-down and bottom-up approaches are two of the most common models. The major drawback is that the top-down approach does not account for local factors that influence demand. On the other hand, bottom-up approaches are prone to propagating errors.

Delphi forecasting is a safe option if time constraints and going back and forth aren’t too much of a concern. In my opinion, the best financial forecasting model (that also incorporates statistical forecasting) is hierarchical forecasting. I find that its thorough approach to data collection and analysis produces reliable and accurate forecasts you can rely on.

After reviewing all the models, methods, and software above, I hope you’re able to find the right solution for your business needs and goals.

Editor’s note: This article was originally published in June 2022 and has been updated for comprehensiveness.

The creator economy is booming, but here’s what most won’t tell you: Successful course creation involves much more than recording videos and hoping for sales.

I spoke with leading course creators who are actually walking the walk — marketers like Tommy Walker, Erica Schneider, and Andi Alleman — to dissect everything from their course creation process to their six-figure launch strategies.

In this guide, I’m breaking down everything they shared with me, from their exact course creation process to the launch strategies that actually moved the needle.

Table of Contents

• Why sell an online course in 2025?
• Does selling online courses make money?
• The Course Selling Process: Your Complete Roadmap
• How to Sell Online Courses [+ Expert Tips]
• Best Platforms to Sell Online Courses

Why sell an online course in 2025?

The online education market is projected to reach $1 trillion by 2028. But beyond the obvious opportunity, there’s something more compelling: the ability to transform your expertise into scalable income.

Productize your expertise.

Here’s what I love most about online courses: You can get paid for sharing your zone of genius.

If you’ve started a career as a freelancer or a consultant, you’ve already learned how you can sell your expertise to others. But in most cases, you’re capped at a 1:1 relationship. After all, there are only so many hours in the day and clients you can fit into your schedule.

But, an online course gives you the chance to package your expertise into a product that people can consume. This allows you to go from 1:1 to 1:many — there’s no cap on the number of students who can take your course.

As Amy Porterfield writes, “You don’t need to be the leading expert in your field. You only need what I like to call a 10% edge.” That 10% edge refers to the things where you have slightly more knowledge, experience, or perspective than your audience.

Build your brand.

Creating a course isn’t just about the immediate revenue (though that’s nice).

It also helps position you as an expert authority in your field. When you package your expertise into a structured learning experience, you’re demonstrating mastery in a way that blog posts or social media content can’t match. This can lead to:

• Speaking opportunities.
• Higher-paying clients.
• Media features.
• Partnership opportunities.

Diversify your revenue.

I’m passionate about not putting all your eggs in one basket. Building several revenue streams means you can have several offerings (say, if you want to have a podcast, do consulting work, and have the occasional speaking gig), but you also fortify your business when you have revenue coming from different sources.

Online courses are ideal for adding consistent revenue to your bottom line, especially if you are able to have an evergreen course that can run without hands-on involvement.

Make a difference.

Perhaps the most rewarding aspect of creating an online course is the impact you can have. When you help someone master a new skill, solve a persistent problem, or achieve a goal they’ve been struggling with, you can help create lasting value for other people.

Does selling online courses make money?

The short answer? Absolutely. But let’s move beyond the aspirational “six-figure course creator” headlines and look at the real numbers and what it actually takes to succeed.

Source

Recent data from Kajabi, one of the leading course platforms, reveals the scale of opportunity:

• 12M course offers were sold in 2023 (on Kajabi alone).
• Courses, membership, and community offers continue to grow sharply year over year.
• 70% of creators say online courses are their highest revenue stream (followed by digital downloads, subscriptions/memberships, and online coaching).

Source

But here’s what most articles won’t tell you: Success requires more than just great content.

The course creators I interviewed consistently emphasized that profitability comes from three key elements:

1. Strategic market research, understanding exactly what your audience wants and will pay for before you create anything.
2. Distinctive positioning, being able to stand out in a crowded market by solving specific problems in unique ways.
3. Strong launch strategy, having a proven system to reach the right people and convert them into students.

In the next section, I’ll dive into exactly how to create that system, breaking down the pre-sale, launch, and post-sale phases that successful course creators use.

The Course Selling Process: Your Complete Roadmap

When I first started digging into how creators successfully sell online courses, I assumed the big focus would be on making an amazing product. But after talking to folks like Erica Schneider, founder of Cut the Fluff and co-founder of Full Stack Solopreneur, and Tommy Walker, founder of The Content Studio, it became clear that selling a course is much more about the process than the product.

As Schneider points out, launches are often portrayed as quick successes, but in reality, they take months — sometimes years — of preparation. The stories of “$10K days” might be true, but they often leave out the weeks of work on creating the product, building a sales page, iterating based on feedback, and crafting launch content that resonates with buyers.

Let me walk you through the three key phases of selling an online course, and I’ll share what I’ve learned from creators who’ve done it well.

Pre-Sale: Building Momentum (6+ Weeks)

One of the biggest misconceptions about selling courses is that the process begins when your course is finished. But as Schneider told me, the pre-sale phase is where the real momentum starts. By the time your cart opens, your audience should already be excited about what you’re offering.

The key to a powerful pre-launch? Focus relentlessly on transformation. “People aren’t buying features or products. They’re buying outcomes,” Schneider emphasizes. This means every piece of content should paint a clear before-and-after picture of what your course delivers.

A great example Schneider points to is Kaitlyn Bourgoin’s “Wallet-Opening Words” course. It doesn’t promote teaching copywriting — it promises to help you “think like a copy scientist, instantly rewrite your copy, and look like a genius.” The transformation is clear, specific, and compelling.

How to Build Momentum for Your Course

Interestingly, she recommends starting your launch before your course is even finished. Why? It creates authentic content and brings your audience along for the ride. Some effective pre-launch strategies include:

• Share behind-the-scenes content. Whether you’re outlining your course, creating lesson slides, or refining modules, give your audience a peek into your process. Not only does this build curiosity, but it also demonstrates the thought and care behind your course.
• Highlight transformation stories. If you’ve run beta tests or pilot programs, share the tangible results students achieved. Schneider emphasized this as a great way to show the value of your course in action, focusing on specific wins instead of vague promises.
• Address pain points. Talk openly about the challenges your course solves. Use real-world examples or questions from your audience to show how the course directly addresses their struggles.
• Start a waitlist. Creating a simple sign-up page lets you gauge interest and build exclusivity. As she noted, a waitlist primes people to act as soon as the course goes live.
• Leverage targeted lead magnets. Free guides, webinars, or email series can give potential students a taste of what your course offers. The goal is to leave them wanting more of the transformation you’re promising.

Featured Resource: Free Webinar Planning Kit

Download your free webinar planning kit now.

During the Sale: Creating Event-Level Excitement (4-7 Days)

The actual launch is where everything comes together. Schneider explained that the goal is to make your launch feel like an unmissable event: “There’s this party happening. You can come inside if you want to, or you can stay out there and miss the fun.”

I loved this perspective because it reframes the launch as an experience rather than a hard sell. According to Schneider, a 4–7 day window often works best, with two predictable spikes: a surge on the announcement day and another on the last day. The in-between? That’s where consistent, engaging communication keeps the momentum going.

Launch Window Best Practices

• Offer genuine early-bird incentives (not just discounts).
• Include exclusive bonuses for launch participants.
• Share real-time testimonials and quick wins.
• Create engagement through live events or Q&As.
• Maintain high energy throughout launch communications.

Post-Sale: Nurturing Success & Building Social Proof

Here’s a surprising truth I learned: Your job isn’t over once the cart closes. In fact, the post-launch phase is where you can build the kind of momentum that drives future sales.

As Schneider put it, “In the post-launch, you want to talk about how it went down. Do a retrospective, a breakdown of the launch, the numbers if you want to. You’re taking that opportunity to be like, ‘Hey, we pulled this off!’”

Transparency is key here. Sharing a post-launch recap not only engages people who didn’t buy but also provides social proof for your next launch. It’s a way to celebrate success while keeping your audience invested.

How to Sell Online Courses [+ Expert Tips]

Hopefully I’ve made it clear so far that putting together a successful course is so much more than just recording some videos and hoping enough people want to buy it.

Now, let’s get into more of the tactical tips.

1. Validate your course idea with your audience.

Before investing months into course creation, smart creators validate their ideas. You need to find the sweet spot between what you’re passionate about teaching and what people will actually pay to learn.

Here are some questions to get you started:

• Do you have an existing audience? (Think email, social media, or even IRL communities!) If so, who are they, and what do they care about?
• What challenges are they facing? Identify their specific pain points and desires.
• What valuable insights or skills can you share that would solve those challenges?
• What results are people willing to pay for? Look for specific outcomes that make a real difference.

Pro tip: Survey your audience or test your course idea with a low-cost beta version. This lets you see the real demand before diving fully into course creation. I like how Shlomo Genchin posted on LinkedIn to gauge what courses his audience would buy before he created the course.

Source

Andi Alleman, founder of Oui, We Studio, and Casa Noon Beauty, also leverages social to build her course business. She offers several courses for creative entrepreneurs — and she’s made multiple six figures in revenue from them. She explained how she uses her audience to move through her funnel and ultimately sell more products.

“Moving followers from social media into my sales funnel is all about providing high-level value and clear calls-to-action,” she said. “I believe it’s important to create a brand around who your community is, so they can quickly identify that the content they’re seeing is for them.”

2. Define your ideal customer avatar (ICA) and speak to their pain points.

One of the biggest mistakes course creators make is trying to appeal to everyone. The most successful courses speak directly to a specific audience.

For example, let’s say you’re building a course for content marketers. Your ICA might be:

• Age/experience, mid-career marketers looking to grow their freelancing income.
• Pain points, struggling to find high-paying clients, unsure how to craft effective pitches, and overwhelmed by inconsistent workflows.

Once you know your ICA, your messaging becomes sharper.

Instead of generic copy like, “Learn content marketing to grow your career!” — try targeted messaging: “Master the strategies to land high-paying clients and scale your freelance business — all while working smarter, not harder.”

Tommy Walker’s “Content Theory” course is a great example of this principle in action. His sales page speaks directly to his ICA’s pain points while showcasing how his course solves them.

“Courses are really good when you break down the thinking and thought process, not the tactics and prescriptions,” he said. In other words, you’re not just selling a course; you’re helping people shift their mindset and think differently. So, as you refine your course, keep that focus on creating real transformation — not just offering a series of lessons.

The core of a great course is selling transformation, Walker adds.

Source

When you know exactly who you’re creating this course for, everything from your content to your sales copy becomes 10x easier. Think of your ICA as the ultimate, best-fit customer for your course.

I’ve used this tip to refine my own newsletter and website content and have found it to be so helpful.

3. Build a high-converting email list.

Your email list is gold — and I’m not just saying that because I write emails for a living. Building a quality email list is like planting seeds that will grow into future buyers. Focus on attracting people who are genuinely interested in your course topic.

This is consistently my biggest advice for any business owner: Find a way to build a list of email contacts and a platform to share your thoughts and expertise.

I could write a separate 3,000-word deep dive on this alone, but for the sake of brevity, here are some important action steps you can take:

• Create a free lead magnet that’s related to your course topic. It could be a freebie, like a checklist or template, an ebook, a course preview — essentially just anything that gives a new subscriber a peek into what you offer.
• Offer value before you start selling. You know those emails you get with desperate companies trying to sell you something? Don’t do that! Instead focus on offering real value and expertise to your reader to build trust; hopefully this should intrigue their curiosity and make them want to consume more of your content.
• Use an opt-in form on your website or landing pages. A high-converting opt-in form has a clear, benefit-driven headline, an irresistible CTA, and as few fields as possible.

This is a great example of a strong lead magnet from Amy Porterfield:

Alleman has some tips here, too. Her newsletter “No Gatekeeping” has about 35,000 followers.

“I recently ran a campaign for a launch that averaged over 75% open rate because I focus on value, value, value — and then sell only when someone has continued to engage with content related to that specific course or product,” she said. “I send regular emails offering insights, actionable tips, and personal stories related to the course content. I also segment my email list to tailor messages to different subscriber interests, which has significantly boosted engagement.”

4. Create a pre-launch content series.

Pre-launch content warms up your audience and builds anticipation before you even mention your sales pitch.

Justin Welsh, a solopreneur thought leader, had one of my favorite course launches to date. It’s a textbook case to follow if you’re wanting to learn more about how to create, launch, and sell a course.

Why I like this:

• It’s clear that I’m segmented into an engaged portion of Justin’s email subscribers (which I am!), so I’m getting more in-depth content than the general newsletter.
• I love that he’s hyping up the waitlist before you get the chance to buy.
• Before asking for any purchase, Justin is sharing a ton of valuable info so you know what to expect in the course.
• There’s a clear launch plan included so you know what email to expect next.
• By the time I got Justin’s next email, I was eager to see what he’d be sharing next.

P.S. This launch brought in more than $1M for Welsh, so it’s worth taking notes on some of his strategies.

How to Create a Pre-Launch Sequence (2 weeks)

• Email 1: Problem + Solution Preview
• Email 2: Student Success Story
• Email 3: Behind-the-Scenes Look
• Email 4: FAQ & Objection Handling
• Email 5: Launch Announcement

When you’ve done the groundwork — validating your idea, building trust, and demonstrating expertise — selling becomes natural. Your audience should be thinking, “When can I buy?” and not “Should I buy?”

5. Host a free webinar or workshop.

Amy Porterfield is another leading voice in the online course space — if not THE leading voice. Her most prominent advice? Sell courses through a free webinar.

Webinars are a great way to offer immense upfront value, build trust, and let you demonstrate your expertise.

Here’s how it works:

• Teach something valuable. Share a quick win related to your course topic.
• Highlight the gap. Show how your course will help attendees build on what they just learned.
• Include a strong CTA. Present a limited-time offer for your course at the end of the session.

I’m a big fan of webinars, too, because they help me learn more about a course before committing to anything. This webinar for the Hey Creator $1K Course Blueprint is a great example of a course webinar that’s both simple and effective.

6. Set up a high-converting sales page.

Please promise me one thing: Don’t go to ChatGPT and prompt it to write a sales page for your online course, brush your hands, and call it a day. Please!

Your sales page should A) sound like you, B) make your reader (and ideal customer) feel like you’re talking specifically to them, and C) most importantly, prompt the reader to take action now. Some creators spend literally thousands of dollars on a great sales page because it has a direct impact on their revenue.

Here are some key components of a great sales page:

• A clear value proposition. Explain what transformation your course offers.
• Social proof. Include testimonials, case studies, or data points.
• A breakdown of what’s included. Show the value of every module or resource.

Ali Abdaal’s Part-Time YouTube Academy has a great sales page that you can learn from.

Source

Social proof shows how many people have taken the course and what students are saying about the value.

Source

It’s clear who this course is for: beginner creators and intermediate/advanced YouTubers. He also makes it clear the ideal outcomes, things like 100,000+ subscribers or $6M/year in revenue.

Source

Plus a great lead magnet.

Source

The Quest Formula

Shlomo Freund explained how he used this copywriting framework to sell courses — it’s a great one to bookmark.

Source

The Quest Formula can be broken down into these components:

• Qualify. Speak directly to your audience.
• Understand. Highlight their pain points and aspirations.
• Education. Share how your course solves their problems.
• Stimulate. Tap into their emotions.
• Transition. Lead them seamlessly into your CTA.

7. Create urgency with limited-time offers.

Limited-time offers work because they force people to act. If you’re anything like me, you’ve got a list of evergreen courses you’d love to take someday — but there’s nothing pushing you to sign up right now. A time-sensitive offer changes that.

Here’s the key: You need to show the value your students are getting. Break it all down — video modules, templates, live sessions, bonuses — and attach a real dollar value to each piece. When you show they’re getting $2,000 worth of material for $700, it feels like a steal.

Then, make it clear they need to act now. Set a firm deadline and remind them in every email or post. Use countdown timers. Offer meaningful discounts or fast-action bonuses like a free coaching session for the first 20 signups.

Why does this work? Because it eliminates procrastination.

When someone knows they only have a week to get in, they’re far more likely to take action — especially if your course speaks directly to their pain points. The key is to make the offer feel valuable, time-sensitive, and real.

Here’s an example of a limited-time offer I got from Foundr:

8. Leverage social proof to build trust.

One thing I really love when considering a course is reading testimonials. Seeing how others have succeeded makes it easier to trust that the course will work for me too.

When it comes to your own course, showcasing social proof is crucial for turning skeptics into buyers. There are a few types of social proof you can use:

• Success stories. I love how Porterfield does this on her Digital Course Academy page. She highlights real success stories, showing exactly how much money students made after taking her course. It’s tangible and helps prospective buyers see exactly what they could achieve.
• Borrowing Other People’s Audience (OPA). This strategy, shared by Liam Alston, involves leveraging someone else’s audience to promote your course. Alston has found it to be an invaluable tool when launching. By tapping into someone else’s established audience, you get immediate access to a group that already trusts them, making it easier to sell your course.

Source

9. Nurture student relationships after the purchase.

Ideally, your course should feel more than simply transactional — don’t ghost your new customers.

Alleman said this was a crucial part of her course sales process. “It’s so important to nurture relationships at every stage of the funnel. It’s not just about moving people along but about consistently providing value and building trust,” she said.

“I also host community challenges and share loads of resources during those times — it keeps me and my programs top of mind when someone is ready to buy.”

10. Encourage referrals and repeat purchases.

Most creators will agree with me when I say that some launches will flop — it’s a part of the process. The key is to learn from the experience and make tweaks for the future. Perhaps you could revamp your launch sequence or offer more webinars next time.

“After the launch, I always create a detailed launch debrief to analyze social media performance, email campaigns, and lead magnets,” Alleman said.

From there, it’s a great idea to encourage referrals from your happy students, as that’s the best marketing tactic you could use.

As Justin Welsh writes, “The words of your customers will always convert prospects at a much higher rate than your own. Every beautiful testimonial is a chance to convert more prospects into happy customers.”

Source

Best Platforms to Sell Online Courses

1. Thinkific

Thinkific is an education and online business platform that goes beyond course content. You can create digital downloads, courses, coaching, and webinars for your business through Thinkific. You can even use course templates and an AI course outline generator to kick-start your project.

Why I like Thinkific: Thinkific has an impressive suite of marketing tools that can help you sell your courses, like this landing page builder. As a solopreneur, I’ll take all the help I can get!

Pricing: Plans range from $36/month (Basic) to $149/month (Grow).

2. Teachable

Source

Teachable is another leading platform in the online course space. Like some other tools, it has an easy-to-use drag-and-drop builder that makes it super easy to design your course. You’ll also have access to advanced sales and marketing techniques, including upsells, coupons, and order bumps.

Why I like Teachable: It feels like a powerful platform that also seems easy to use.

Pricing: Basic is $59/month, Pro is $159/month, and Pro+ is $249/month.

3. Podia

Source

Podia helps you build an online store for your digital courses. You can sign up and sell online courses, digital downloads such as ebooks, or offer membership plans to students all from a single website store.

This platform uses a similar template for all its store offerings to help streamline the process of course creation and selling, and also lets you publish your course immediately or send out pre-sale emails to generate user interest.

Why I like Podia: Overall, Podia seems pretty easy to use and beginner-friendly.

Pricing: The Mover plan is $39/month and the Shaker plan is $89/month.

4. Kajabi

I’m a huge fan of Kajabi. I see a lot of creators in my network using Kajabi to power their businesses, too. It’s more than just a place to host your online course — you can use its advanced marketing tools to create your sales funnel and automate parts of your marketing.

Why I like Kajabi: I associate Kajabi with a higher level of professional sophistication. If you’re serious about building an online business, this seems like the ideal tool.

Pricing: Plans start at $69/month and scale up to $399/month for the Pro plan (significantly higher than competitors).

5. Skillshare

Skillshare classes primarily focus on creative skills such as writing, photography, blogging, and design. It operates as a marketplace where students subscribe to access a library of courses, and creators are compensated based on watch time.

This model provides access to a large, built-in audience but offers less control over pricing and branding. Additionally, the revenue share model means earnings can be lower compared to selling courses independently.

Why I like Skillshare: This platform seems like a lower barrier to entry if you want to experiment with online courses but don’t quite yet have a marketing system in place. It also has a wide variety of niche courses that you can explore.

Pricing: Free version available, pricing for paid plans varies.

Ready to sell your online course?

I hope it’s clear what some of the key steps are to launching your course — from validating your idea, to creating a launch strategy, to building relationships with your audience. But of course, this is just a sneak peek. Honestly, there’s so much more you can learn that, well, this could be a course in and of itself. (Jokes!)

Creating a course isn’t just about recording educational videos or earning so-called “passive income.” It’s about something much bigger. A course is an incredible opportunity to package your expertise, connect deeply with your audience, and provide real, lasting value to people.

So, if you’re considering creating a course, I hope this inspires you to take that next step. And don’t forget — tools like HubSpot can make the process so much smoother, from email marketing to setting up sales funnels. Happy launching!

Being a salesperson today feels like trying to get someone’s attention in Times Square; buyers are swamped with choices, blinking lights, and loud pitches from every direction. One word: Overload.

The internet makes research a breeze — until you’re drowning in options and can’t tell what’s worth your time. As a copywriter, I’ve been there, wading through endless tabs, trying to separate the gold from the noise. Buyers face the same challenge every day, making simplicity a superpower in sales.

SNAP Selling is designed to help you cut through the noise and make buying easier for prospects. This method offers a fresh way to approach buyers who are inundated with information and struggling to make decisions. Let’s take a look at the basics of SNAP and how you can start using it in your sales cycle.

Table of Contents

• What is SNAP selling?
• What does SNAP Stand for anyway?
• The 3 Decisions
• SNAP Selling Terms to Know
• How to Start SNAP Selling

What is SNAP selling?

SNAP selling is a sales methodology created by sales strategist Jill Konrath, based on her book, which covers the process extensively. This approach tackles the modern, overwhelmed customer by simplifying offerings and focusing on the buyer’s needs and priorities. Bonus: the whole approach is customer-first.

I like to think of SNAP selling like Marie Kondo for your sales process — cutting out the clutter and focusing on what sparks joy for your buyer. By aligning with buyers’ priorities, sellers enable them to make quick, informed decisions.

I see this model as a win-win for both buyers and sellers. For buyers, it offers a smoother, less overwhelming purchasing experience. With 77% of B2B buyers describing their most recent purchase as “difficult” or “very complex,” the demand for simplicity in sales is more important than ever. For sellers, the key benefit is a shorter sales cycle, allowing them to close deals more efficiently.

What does SNAP Stand for anyway?

SNAP is more than just a nod to the sales timeline. It’s an acronym that captures the core principles driving the sales process.

S — Simple

You want to make buying less of a maze. This method asks salespeople to clear the path so buyers can see what’s important, without getting tangled in unnecessary details.

Let’s say I’m in the market for a car that’s reliable, fuel-efficient, and in my price range. I don’t need to hear about every new car on the market. That will just distract me from my main criteria. Instead, I want to focus on a few models and compare them based on the features I care about most.

Instead of bombarding your buyer with excessive information or overwhelming options, SNAP asks that you deliver clear, concise messages highlighting the essentials. And, this can have beneficial results. Suppliers that simplify the buying process are 62% more likely to close sales for premium offerings compared to their competitors.

N — iNvaluable

SNAP puts the salesperson front and center. A rep is more than just a seller. Instead, they’re a trusted advisor and resource for buyers. This means going beyond the product pitch to provide actionable insights, industry expertise, and tailored solutions that genuinely help them succeed.

Lowe’s is my go-to example. I don’t go there so their team can sell me random tools. I’m in search of a solution. I see their staff as experts who can understand my problem and create a path toward a solution.

Research shows that nearly one-third of B2B buyers lack trust in salespeople, and 88% of buyers will only make a purchase if they perceive the salesperson as a trusted advisor. You need to be more than just a seller. You’ll have to be iNvaluable.

A — Align

Buyers want to feel valued, not treated as faceless entities. In fact, 76% of B2B buyers expect personalized attention tailored to their specific needs from solution providers.

Under SNAP, salespeople need to align their offerings with buyers’ specific priorities, goals, and challenges. This requires a deep understanding of their business needs and objectives. As a rep, you’ll need to engage in meaningful conversations to uncover what truly matters to prospects and tailor your pitch accordingly.

P — Priority

And lastly, you’ll need to focus on what’s most urgent and important for your buyer. Buyers often face competing demands and limited bandwidth, so it’s crucial to identify their top priorities. For example, if their priority is meeting a tight project deadline, highlight how your product can deliver quick results.

As a buyer, I may have several things I want, but they don’t all have equal weight. Sure, it would be nice if my new set of wheels has Apple CarPlay, but finding a reliable hybrid car is much higher on the list. A salesperson using SNAP would be able to understand that and guide me in the right direction.

The 3 Decisions

So now that we know what SNAP stands for, it’s time to see how it actually works. The SNAP framework guides buyers through three critical decisions involved in every purchase. Here’s what those stages are and how they work.

1. Allowing Access

Sales has the reputation of being pushy, which in many cases pushes prospects away. So, the first hurdle? Getting a buyer to open the door.

Your buyer is probably asking themselves, “Is this worth my time?” I know when I sign up for a sales call or demo, I’m a little nervous. I’m worried about being pushed too hard, too fast or totally wasting my time with too broad of a pitch.

As a salesperson, you need to show your prospect why your offering is worth their consideration and fast. Making a strong first impression, demonstrating immediate value, and respecting the buyer’s time are crucial for opening the door to further engagement.

2. Moving Away from the Status Quo

Buyers often resist change. Even I worry about swapping out a household staple for a new offering (what if my new shampoo fails to give me the right shine?). That’s driven by a sense of risk and the comfort of familiarity.

To pull customers into new waters, sellers need to highlight the drawbacks of the way things are now and highlight the benefits of making a change. This can involve pointing out inefficiencies, missed opportunities, or tangible gains from adopting a new solution.

Remember: Providing a clear, low-risk path forward can make change feel less daunting. As a salesperson, it’s your job to guide them down the road and make the journey less scary.

3. Selecting and Changing Resources

So, your prospect has decided the old way no longer works — they need a new product or service to grow. Now, they face the challenge of choosing the right solution or partner. Of course, as a salesperson, you want to occupy that coveted spot.

To win prospects over, sellers must differentiate their offerings by showcasing unique value, building trust with testimonials or case studies, and simplifying decision-making with tailored proposals or tools. Making this stage as straightforward as possible increases the likelihood of being selected.

SNAP Selling Terms to Know

Now that we understand the essence of SNAP, let’s delve into some of Jill Konrath’s other key concepts. These terms will help you better navigate her sales methodology, no book needed.

D-zone

The D-zone (think “danger zone”) is the dreaded place where sellers are dismissed or deleted — sales are indefinitely deferred, or prospects vanish entirely. Any salesperson with experience has likely found themselves stuck in this frustrating limbo. As a freelance copywriter, I’ve encountered it too.

What Konrath emphasizes, however, is that the D-zone isn’t merely a reflection of external market conditions. Instead, it often points to a flawed sales approach. While this realization can be disheartening, it’s also empowering. If our approach is the issue, we have the power to fix it.

Frazzled Customer

This is a key concept to the SNAP sales methodology, which is specifically designed to close sales with the frazzled buyer. So, what are the traits of a Frazzled Customer?

• Dismissive: Buyers quickly decide if your solution is worth their time. They need clarity upfront about who you serve, what you offer, and how you can help. Avoid making them jump through hoops like booking calls or downloading excessive materials to figure this out.
• Wary of complexity: Imagine your buyer juggling flaming swords on a unicycle. If your pitch feels like one more thing to balance, they’ll move on — fast. Make it easy, clear, and worth their time.
• Distracted: Frazzled buyers are pulled in countless directions, balancing work demands, client needs, and competing offers. Capturing and maintaining their attention requires concise, relevant messaging that aligns with their priorities.
• Demanding: These customers expect personalized, expert solutions. They don’t want generic pitches or information they could easily find online. Sellers must provide unique, tailored insights to stand out and build trust.

How to Use the Buyer’s Matrix to Connect

The Buyer’s Matrix is a series of questions that help salespeople connect with the “frazzled customer.” These questions help sellers uncover the buyer’s journey and potential roadblocks, preparing sellers to guide them through the three critical sales decisions highlighted above.

The 9 Key Questions of the Buyer’s Matrix

1. Roles/Responsibilities: What are they in charge of or expected to manage?

2. Business Objectives & Metrics: What do they want to achieve? How is success measured? How are they evaluated?

3. External Challenges: What external factors or industry trends might make it more difficult to reach their objectives?

4. Strategies and Initiatives: What strategies and initiatives are likely in place to help achieve their objectives?

5. Internal Issues: What likely issues does the organization face that could prevent/hinder goal achievement?

6. Primary Interfaces: Who are the peers, subordinates, superiors, and outsiders with whom they frequently interact?

7. Status Quo: What’s their “status quo” relevant to your product, service, or solution?

8. Change Drivers: What would cause them to change from the status quo?

9. Change Inhibitors: What would cause them to stay with the status quo, even if they’re not happy with it?

How to Start SNAP Selling

Getting started with SNAP seems easy. All you have to do is work through the acronym, right? Well, a few helpful tips can make the process seamless. In the spirit of simplicity, I’ll go through each stage below and share tidbits that can make a difference.

1. Keep it simple.

Helpful tips:

• Understand the buyer’s world.
• Streamline communication.
• Simplify decision-making.

Making a new purchase poses a challenge for buyers. So, you want to start your selling process with empathy. That means understanding the buyer’s world. Acknowledge that your prospect is overwhelmed with information and short on time. I know when I’m shopping for new software that a simple “that sounds really frustrating” makes me feel seen.

Another part of maintaining simplicity? Streamlining communication. Your customers shouldn’t have to know a dictionary’s worth of jargon to make a purchase. Cut the corporate-speak. If your pitch feels like legal fine print or a never-ending slideshow, it’s getting skipped. Keep it sharp, friendly, and easy to digest.

All of that allows your buyers to simplify decision-making. Ideally, you can present your buyer with straightforward options to choose from. Transparent offerings reduce the number of steps needed to take action.

2. Be invaluable.

Helpful tips:

• Become a trusted advisor.
• Focus on value.
• Education, don’t push.

Under the SNAP method, salespeople should be trusted advisors who can help buyers find the solutions they need. For example, I have a huge tree behind my house with unwieldy branches. The tree pruning company is the expert; I just have a job I need done. Their expertise allows me to navigate the process. As a result, they get my business.

So yes, selling is important. However, building trust becomes the foundation of every sale. You should share insights that help your prospect understand their challenges and opportunities. Be sure to focus on value. Highlight how your solution uniquely addresses their needs or solves problems.

Be sure to educate, don’t push. Offer useful resources like white papers, case studies, or actionable advice to establish credibility. Pushing too hard can drive your prospects away.

3. Align with priorities.

Helpful tips:

• Know their goals.
• Tailor your pitch.
• Stay relevant.

Knowing your prospect’s needs is essential to the SNAP selling process. So, there’s no one-size-fits-all script. Each prospect is different, so your approach will need to be personalized every time. Research your prospect’s priorities, such as increasing revenue, reducing costs, or streamlining operations. This allows you to know their goals and find the right solutions in your list of offerings.

From there, tailor your pitch. Your messaging should be custom for each person you’re selling to. Focus on how your offering aligns with their specific goals.

And, remember: Making the sale isn’t the end of the relationship. You need to check in regularly to ensure that you stay relevant. Keep track of your buyer’s priorities so you can make sure you’re aligned. Plus, you’ll have a chance to pitch new tools or offerings that fit their needs.

4. Focus on priorities.

Helpful tips:

• Respect their time.
• Address the most urgent needs.
• Eliminate non-essentials.

Recently, I decided to shop around for a new internet provider. For one option in my area, I had to (gasp) pick up the phone and call just to hear the price. The pitch on the phone lasted much longer than I needed it to. I would have preferred sticking to a few helpful questions than getting to hear my options.

Just like everyone, your prospect is busy. Remember to respect their time. Remove any unnecessary information or steps that could delay decision-making.

Try to be brief and to the point in all communications. In fact, put information that addresses your client’s most urgent needs toward the top of everything you send. Do your best to eliminate non-essential information. Instead, highlight how your solution addresses your prospect’s most pressing issues.

While SNAP selling is adaptable enough to enhance various sales systems, pairing it with a CRM tool can significantly maximize its potential. In fact, 76% of salespeople consider sales technology to be “critical” or “extremely critical” for closing deals.

A standout CRM to consider is HubSpot Sales Hub, which provides powerful tools to streamline communication, track leads, and optimize the sales process.

Make Selling a SNAP

Writing this reminded me of my last online shopping spiral — hours comparing vacuums, reading reviews, and overthinking. Now, imagine that stress on a B2B scale.

SNAP selling cuts through the noise by focusing on clarity, trust, and what buyers actually need. It’s like having a GPS for sales — straightforward, reliable, and stress-free. Paired with tools like Sales Hub, it’s a win for buyers and sellers alike — and something I wish existed for shopping decisions, too.

I worked as an office assistant in the past. My job was to help the bookkeeper keep track of sales orders, invoices, and purchase orders. I learned rather quickly that there are major differences between the three documents (and they don’t all go within the same filing cabinet!).

I also learned that your role in the sales process determines which document you generate. For example, you’ll create the sales order if you’re the seller.

So, what is a sales order, how is it different from other key sales documents, and how does it fit into your sales process? I’m glad you asked, and I’ll answer those questions and a few more below.

Table of Contents

• What Is a Sales Order?
• Why Are Sales Orders Important?
• How Are Sales Orders Different from Quotes?
• Why Are Invoices Important?
• Sales Order Example
• Sales Order Format
• Sales Order Process

What Is a Sales Order?

A sales order is a commercial document — prepared by a seller and issued to a customer — confirming the sale of goods or services involved in a given transaction.

Confusing this document with an invoice is common, but they are two documents with separate functions. As a business owner, I find it helpful to think of a sales order as a detailed summary of the goods or services I will provide to my customers.

A sales order contains details about the sale, including the quantity, quality, and price of any goods or services exchanged. It also covers things like delivery date, delivery address, payment method, and any other information relevant to the terms and logistics of the sale itself.

A sales order is an internal document — generated by the vendor and kept on record. This allows companies to keep track of the orders they fulfill.

Manufacturers, retailers, wholesalers, and supplies commonly use sales orders. However, you’ll find them used in nearly every industry and niche.

Types of Sales Orders

Like any other business document, there are variations to sales orders. The longer you’re in business, the more likely you will see four types of sales orders. Depending on the sale, one sales order type might work better than the others.

Cash Sales

In my opinion, cash sales are the simplest type of sales orders. You’ll use this sales order when a customer places an order and pays for it. Either they’ll pick up the order from your storefront, or you’ll issue a shipping date.

Cash sales are typically standard for B2C sales. In other words, the customer does not need to go through accounts receivable to purchase, and no purchase order is required. They simply give you their money, and you provide goods or services within an estimated time frame.

Rush Orders

Does your customer need their order as soon as possible? If so, I suggest using a rush order.

A rush order is used when a customer’s needs are met the same day the order is placed. This is usually well before the standard timeframe of delivery. Unlike cash sales, where the order is paid for before delivery, rush order payments are made after exchanging goods or services.

Scheduling Agreement

A scheduling agreement is an external document detailing delivery dates for goods and services, pricing, quantity, and payment terms.

Let’s pretend I am hosting three separate holiday parties. At each party, I want to serve charcuterie boards. When I place my order with the caterer, I tell them I do not want all three charcuterie boards delivered at the same time since my parties are on separate days.

Instead, I want one board delivered on the date of the first party, one on the date of the second party, and the final delivery on the date of the third party.

The scheduling agreement helps track delivery dates so that both the seller and the customer are on the same page.

Third-Party Order

If your business coordinates with another company for fulfillment and shipping, you’ll want to use third-party sales orders.

I like to think of third-party sales orders as “to-do lists” for the other company. While this type of sales order details delivery dates and payment information, it also doubles as a packing list. It helps the other company understand which products go into the box, where they should be shipped, and when.

Why Are Sales Orders Important?

If you’re a vendor, sales orders are crucial to keeping track of your inventory. They allow you and your business to stay on top of:

• What you have in stock.
• What you have on backorder.
• What you may need to purchase from your distributors.

Remember — agreeing to the terms of a purchase order usually makes a deal legally binding. If you have questions about a pending purchase order, seek legal counsel before signing. Trust me, maintaining detailed records of your sales orders will help ensure you can deliver on those agreements. And, when you can fulfill orders on time, you maintain your brand’s reputation.

Sales orders are also central to reducing the risk of material misstatement in your company’s financial reporting. Material misstatement is any kind of inaccuracy in a financial statement that may significantly impact the financial decisions of anyone relying on that statement’s information.

I’m not trying to stir panic, but material misstatements in reporting inventory balances can have some very real consequences.

For instance, misstating ending inventory can inflate or reduce your company’s profits. As you can assume, neither of those outcomes looks good if you’re being audited.

Pro tip: It’s absolutely crucial to maintain accurate records of your sales orders. I suggest conducting quarterly internal audits to catch any potential material misstatements and ensure accuracy.

How Are Sales Orders Different from Quotes?

I’m not a mind reader, but I bet the next question you might ask is, “Are sales orders different than quotes?”

The answer is yes. Sales orders are different from quotes.

Though vendor-generated sales orders and quotes discuss a potential sale, the two documents serve very different purposes. I like to think of a sales order as the byproduct of the sales process. It’s generated after a sales decision is made.

A quote is an estimation. It gives the buyer a general idea of how much they can expect to pay. The document contains an itemized list of products and services along with their respective prices and terms of sale.

A quote is non-binding. Once a buyer accepts a quote, they move to the next step in the process by sending a vendor something called a purchase order.

Sales Order vs. Purchase Order

When I worked as an office assistant, I became very familiar with purchase orders. A purchase order is an official confirmation of a buyer’s intent to purchase from a vendor. It’s a buyer-issued document that confirms certain aspects of a transaction, including details like prices and requested quantities.

For example, if I needed to purchase 23 notebooks at three dollars a piece, the purchase order would look like this:

• Quantity: 23 notebooks
• Unit price: $3.00
• Total price: $69.00

Once a vendor receives and accepts the terms of a purchase order, they create a sales order based on its details.

Sales orders and purchase orders are inherently interconnected. The key difference between them is who generates the document and who receives it.

A purchase order comes from a customer, is issued to a vendor, and lays out the terms of a potential sale. A sales order comes from a vendor, is issued to a customer, and confirms the vendor’s acceptance of the terms set in a given purchase order before delivery.

Once accepted by a vendor, a purchase order often constitutes a legally binding contract. If a vendor doesn’t deliver on the agreed terms of a purchase order, a buyer may take legal action against the seller in certain circumstances, and vice versa.

Sales Order vs. Invoice

Now that I’ve covered sales and purchase orders, the invoice is the next document in the sales process. If you’re wondering, “Is a sales order the same as an invoice?” The answer is no, and here’s why.

An invoice is sent from the seller to the buyer and specifies the amount of money the buyer owes a vendor for exchanging goods and services agreed upon in the sales and purchase orders. It can be easy to confuse sales orders with invoices. Both are vendor-generated and list the details of a specific sale.

However, the main distinctions between the two are highlighted in each document’s purpose and timing. A sales order confirms a sale and prompts a vendor to start assembling, packaging, or preparing the goods and services requested in a purchase order.

After this step, invoices are generated. Using the details specified in a sales order, invoices tell buyers how, when, and how much to pay for the goods and services they’ve purchased.

Pro tip: Check out these free invoices for an easy way to track your revenue and payments.

Why Are Invoices Important?

Invoices are essential because they definitively settle deals for vendors and set official payment timelines. Typically, 30 days is a standard payment timeframe. However, the timeline can vary from business to business. For example, in my business, some clients pay my invoices within 30 days and others within 60 days.

Invoices are essential for record-keeping purposes. An invoice is the most concrete evidence buyers and vendors have for a sale. Keeping track of invoices allows a company to stay on top of how much it’s spending or earning, which employees are responsible for any sales or purchases, and any outstanding debt the company may have.

As a business owner, I’ve found it’s proper practice for businesses to track invoices for tax purposes. The IRS suggests that businesses maintain a running summary of all business transactions. Keeping detailed records of invoices can be a critical part of that process.

Invoices also help businesses from a legal perspective. They provide documentation of how and when a customer bought goods or services from a vendor. A signed invoice shows a mutual understanding between a buyer and a vendor regarding a specific purchase, reducing the risk of legal action over pricing.

In other words, invoices are critical for tracking revenue and preventing potential legal or customer issues.

Pro tip: I highly recommend standardized invoice templates. I’ve found they speed up the drafting process and eliminate the risk of accidentally omitting essential items. You can use dedicated tools like HubSpot’s Invoice Generator to make this process quicker.

Sales Order Example

Sales Order Format

Now that I’ve explained a sales order, it’s helpful to discuss the information your sales order should contain. As seen in the example above, typically a sales order includes the following:

• Company name and contact information.
• Customer name and contact information.
• Customer billing information.
• Customer shipping information.
• Product or service information.
• Price before taxes.
• Tax, delivery, and shipping charges.
• Total price after taxes.
• Any previous deposit.
• Current balance.
• Terms and conditions as defined by your company.
• Signatures.
• Any other relevant information as needed.

Pro tip: I’ve found keeping track of this information in a CRM helpful. For example, you can streamline the sales order process by pulling relevant customer details from your CRM and populating them into your sales order.

Sales Order Process

When I worked as a teacher, I found quick overviews helpful. Here’s a quick look at the sales process to see how the sales order, purchase order, and invoice fit together. Typically, the sales order process looks something like this:

1. A customer sends a request for quote (RFQ) from a vendor.
2. After receiving the RFQ, the vendor sends back a quote.
3. The customer considers the quote reasonable and sends back a purchase order.
4. The vendor receives the purchase order and uses its details to generate a sales order.
5. The vendor sends the sales order to the customer to confirm the terms of the sale.
6. The vendor assembles, packages, or prepares the goods and services requested.
7. The vendor delivers those goods or services.
8. Using the details of the sales order, the vendor generates an invoice and sends it to the customer.
9. Ideally, the customer pays the amount specified on the invoice within the allotted time frame.

To recap, sales orders play a central role in ensuring that a sale is well-documented, properly conducted, and reflective of both sides’ expectations.

It’s important that anyone consistently involved in sales — such as a vendor or a customer — has an understanding of these kinds of documents and the implications they may have on a company’s inventory, finances, and legal standing.

Editor’s note: This post was originally published in November 2019 and has been updated for comprehensiveness.

Confession — setting up a partnership business with my friend and (now also a business partner) Kasia was the best decision in my professional life. We’ve been working together as a content marketing duo for over five years now, and the growth opportunities we’ve seen would not have been possible if we worked solo.

Not only are we each others’ emotional support or cover for each other during sick leave or vacation. We also challenge our ideas and generate twice as many ideas on projects.

In this post, I’m going to explain the benefits of establishing a partnership. I also explain the three partnership options you can choose from when setting up shop in the United States, along with recommendations from legal experts.

Table of Contents

• What is a partnership business?
• Benefits of Partnership Businesses
• Types of Partnerships

What is a partnership business?

A partnership business is formed when two or more people join their resources to start a business and agree to share profits, losses, and risks. Real estate investments, law firms, and physician groups are some of the most common examples.

Partnerships can take different legal forms, including general, limited, and limited liability partnerships. I will discuss each in detail later.

Partners create a written legal agreement outlining roles, responsibilities, and decision-making processes. Partnerships can end for many reasons, like a partner leaving, the agreement expiring, or other business changes.

Benefits of Partnership Businesses

Before I dive into the different types of partnerships, I thought I’d put together a list of the top advantages of these businesses based on my experiences and observations.

Doubling Down on the Knowledge and Expertise

It’s tough to run a business. But you know what’s even harder? Doing it alone.

Neither Kasia nor I know everything (no one does) — we each have our own strengths and weaknesses. Partnering with someone who has complementary skills and knowledge helps fill gaps and expand your expertise.

Google is a great example of how forming a partnership business can result in spectacular success. Its founders, Larry Page and Sergey Brin, met at Stanford University, where they developed a search algorithm that became the foundation of Google. Their complementary skills — Page’s vision for structuring the web and Brin’s expertise in data mining — helped them build a company that transformed the internet.

The secret lies in choosing someone who not only has the right skills and expertise but who you also work well with. Otherwise, you might experience conflicts.

The right business partner can also create a business plan with you. If you need help getting started, here are a few business plan templates that will guide you in this process. You can access them as an interactive one-page PDF or get the full template on both Google Docs and Microsoft Word.

More Business Opportunities and Extra Support

The major downside of being an entrepreneur is the long hours you have to put in, which can lead to burnout. In fact, over 34% of entrepreneurs experience it, and nearly 46% struggle with constant stress — the threat is real.

Recently, I saw a post from one of Surfer’s founders saying they’re taking a sabbatical to recharge after working long hours for years, which impacted their mental well-being.

Since the company has multiple founders, one taking a break won’t hurt the business.

When you team up with the right person (or people), you can count on their support, and that’s just one of the benefits. Experienced partners bring ideas and contacts you might not have access to, which can (or at least should) lead to further business growth.

Fresh Perspective

This benefit might apply to you if, until now, you’ve been working as a solopreneur. Joining forces with a business partner (or a few) can let you see things from a different angle. Since they have their own experiences, they can notice certain business opportunities hidden in plain sight. Or, as I’ve personally seen, they can come up with solutions to problems you’ve been struggling with almost instantaneously.

This is what happened when I worked at a startup about a decade ago. Originally, the business had just one owner, and I was part of a team of three. We were building a digital product for retailers, as well as food and cosmetics manufacturers. However, while we had knowledge on the sector, we were struggling with convincing decision makers at these companies to meet us for a product demo.

Things changed when our boss decided to join forces with a business partner. Not only did he have a lot of contacts at retail and consumer goods brands. He also pointed out where we were falling short in our attempts to convince our target customers of our solution’s potential ROI.

Lo and behold, we were suddenly able to get through to the right people and present our solution. I’d like to underline that we had success not only because the Co-CEO would call in a personal favor — his perspective and insights helped us improve our pitch and reach new leads.

Smaller Relative Costs

In my experience, whenever the topic of money comes up in the context of a partnership business, it’s usually about sharing profits. In fact, a few people whom I spoke to were tentative about setting up a business with someone else for this exact reason.

What they don’t always think of straight away though, is that they also share expenses. So, for instance, instead of paying $250 per month for an essential tool like a CRM, they might be paying just half of that amount if they have a partner.

This distribution of costs can accelerate business development, as it’s more affordable for everyone to make investments. So, while you share earnings with others, working together means you have more resources to grow your business.

Types of Partnerships

Here are the three types of business partnerships you can consider. Please note that I only list structures that apply to U.S. companies.

General Partnership

A general partnership might be the easiest to wrap your head around if you aren’t a legal expert. It’s one of the options you can choose from if you want to set up a for-profit company in the United States.

Joanna Smykowski, a licensed New York state attorney and senior contributor at Custody X Change, told me that it’s often the simplest to establish from a technical standpoint but can also be one of the riskiest. “If something goes wrong, everyone is equally on the hook,” she said.

In this business type, all partners have equal financial and legal responsibility. Costs and earnings are shared equally, but every person is also personally liable for any debts that the partnership generates.

Who This Type of Partnership Business Works For

Smykowski told me that a general partnership might work best for businesses where there’s a strong relationship or trust and a shared vision between partners. It might be best for smaller ventures with limited risks, like a café or small consulting business.

“In essence, in this business type, partners should not only get along but also bring complementary skills to the table,” she says.

For example, one partner might excel at sales and networking, while the other handles operations and finances.

“In these scenarios, a general partnership can allow for flexibility and faster decision-making because there’s no need to deal with formalities like board meetings or corporate resolutions,” Smykowski says.

Smykowski underlines that companies should always remember this simplicity comes with the trade-off of personal liability, so creditors could come after your personal assets if the business goes bankrupt.

Smykowski describes a scenario she saw that involved two friends who started a digital marketing agency. They had worked together in the past, knew each other’s work ethic, and wanted a quick, straightforward way to launch their business.

“A general partnership worked well for them because they trusted each other and didn’t need outside funding. However, they also made sure to draft a detailed partnership agreement outlining their roles and what would happen if the business dissolved,” she says.

Smykowski emphasized that this step is critical. Even in a general partnership, having clarity about roles and exit plans can save a lot of trouble down the line.

Ultimately, trust in these partnership types should be ironclad. “If your business involves significant liability or you don’t feel comfortable being fully responsible for your partner’s decisions, it’s probably not the right structure,” she concluded.

Limited Liability Partnership (LLP)

This type of partnership business protects partners from personal liability. So, if one partner faces a lawsuit, the personal assets of the other partners remain safe.

Some businesses distinguish between equity and salaried partners. The latter hold senior positions and receive compensation, including bonuses tied to the company’s profitability, but don’t have an ownership stake in the firm.

Who This Type of Partnership Business Works For

I spoke with Mark Pierce, founder and CEO at Wyoming Trust & LLC Attorney, who told me that LLPs are the best choice for professionals like lawyers or accountants who want the flexibility of managing their business while protecting their personal assets.

“An LLP limits the liability of each partner to the amount they have invested, ensuring one partner isn‘t liable for the negligence or fraud of another. For instance, I guided a law firm in forming an LLP to operate efficiently without risking partners’ personal assets due to a colleague’s potential malpractice,” said Pierce.

Alex Freeburg, founder of Freeburg Law, also thinks a Limited Liability Partnership is a good option.

“If you’re in a field where personal liability is a concern but you still want to work closely with others, go with an LLP. Especially in today’s day and age with growing concerns of safety, it’s the safest route,” he said.

Why is it a good choice?

LLPs are practical and follow a simple principle — work together while protecting your interests. So, even though you partner with others, you’re not personally liable for their misconduct or negligence, which makes perfect sense.

Freeburg told me that “in my practice, I’ve seen a lot of small law firms go this route. They can share the workload and profits, but if one partner messes up, the others aren’t on the hook for that. You can work without the stress of personal liability hanging over your head.”

Also, it’s worth mentioning the flexibility of LLPs. Unlike corporations, which have strict governance structures, LLPs let you decide how to run the business. You can set up your profit-sharing arrangements and decision-making processes that work best for your team.

Limited Partnership

Limited partnerships (LP) are a solution somewhere between general and limited liability partnerships. In this setup, there must be two or more partners, but at least one of them needs to have the title of a “general” partner. These individuals have full operational control. However, being the ultimate decision maker comes at a (quite literal) price — they have an unlimited liability for any business debts.

Other partners in this structure are also responsible, but they pay off debts proportionally, i.e., to the amount they’ve invested.

Who This Type of Partnership Business Works For

Ramzy Ladah, sole practitioner at Ladah Law Firm, told me that limited partnerships work best for businesses where there’s a need for active management and outside funding, but without giving up control.

“The general partner takes care of everything — managing operations, making decisions, and assuming all liabilities,” Ladah explained. “Limited partners, on the other hand, put in capital but don’t manage anything.”

Ladah brought two examples of industries where limited partnerships might be the best setup. The first one is real estate development. In these businesses, there must be someone who has experience managing certain steps, like handling permits, keeping control over timelines, and communicating with contractors.

“Investors, as limited partners, provide the funds and stay in the background, not dealing with the stress of day-to-day operations,” Ladah said.

It takes the right people to make a partnership business work.

I cannot imagine running a business solo anymore. Whenever one of us goes on vacation or catches the flu, we feel like someone took away half of our creativity and decision-making capabilities. And it’s not a bad thing; it means that our business partnership works.

Kasia and I were lucky enough to meet each other at work, but I realize not everyone can count on serendipity to find their future business partners. So, a word of advice — before you decide to set up a business or bring on new partners to your existing one, make sure you’re a good fit.

Consider the roles and responsibilities, and which type of partnership business will secure everyone’s interest best. This will help avoid potential conflict and support your company’s growth. Good luck!

Disclaimer: This blog post is not legal advice for your company to use. Instead, it provides background information to help you better understand business partnerships. This legal information is not the same as legal advice, where an attorney applies the law to your specific circumstances, so we insist that you consult an attorney if you’d like advice on your interpretation of this information or its accuracy.

In a nutshell, you may not rely on this as legal advice, or as a recommendation of any particular legal understanding.

Before entering the IT business development and sales profession, I resisted working in automotive sales because of my distaste for shady sales negotiation tactics. I preferred to work for companies that were open to negotiations on price, provided the customer bought within a certain timeframe. I also worked for a company or two that held their pricing firm so they didn’t devalue their product or jeopardize their margins. Sales negotiation, after all, is a delicate art.

Even when you‘ve properly qualified a prospect and carefully managed their expectations through the sales process, the deal can still end in a negotiation. That’s why every salesperson needs to have a solid grip on how to negotiate effectively — from knowing when to hold your ground to knowing when to compromise on price or payment terms to close a contract.

Let’s explore what sales negotiations are. I’ll review why they’re important in sales relationships and identify the tactical and strategic skill set every sales professional should develop to succeed.

Table of Contents

• What is a sales negotiation?
• Sales Negotiation Skills
• Why is negotiation important in sales?

Sales negotiations are a collaborative value exchange between businesses (or a business and a consumer). They are sometimes stressful, often frustrating, and occasionally downright disrespectful. Yet, as a salesperson, when my customer signed a contract after a negotiation process and we both felt like winners: the outcome was worth the effort.

However, it’s also important to remember that as a sales rep or sales leader, you want to protect your company’s profit margins and your reputation for value while negotiating.

I remember a few times in software sales roles when customers would purposely ignore me until the end of a quarter — or the year — hoping to use that leverage against my quota to get a better deal. While it was fun when deals would start flowing in at the eleventh hour, if I compromised too much on price (or if being flexible on contract terms prevented revenue from being recognized for the fiscal period), it was a bitter pill to swallow.

Discounting your products or services for a customer can sometimes convey that you will concede your list price every time they do business with you. When you negotiate with prospects or customers, you should always aim for a mutually beneficial outcome where both the customer and the company feel like they‘ve gained value. A win-win scenario helps sales professionals ensure that the customer’s needs are met without sacrificing their company’s standards or reputation.

The balance between accommodating your prospect’s budgetary restrictions and bringing in a financially viable deal is a tricky line to toe. Arriving at a mutually beneficial outcome is often easier said than done — especially in an era where buyers are more empowered and well-informed than ever.

In sales, negotiating price and contract terms are simply inevitable, and being an effective negotiator in our age of AI and online negotiation tools is crucial.

Let’s take a closer look at why negotiation is so important in sales to grow your business and mitigate your business risk.

Why is negotiation important in sales?

Sales negotiations are valuable in many ways. Here are what I see as the primary benefits.

Effective sales negotiation:

• Establishes trust, credibility, and expectations for each party’s conditions of satisfaction.
• Helps salespeople to tailor contracts like service agreements or proposals to a customer’s unique needs.
• Enables buyers and sellers to agree on terms where both parties can win.
• Builds lasting relationships between both parties by providing a safe space for constructive communication.

During negotiation, sellers must remain composed, consultative, and compassionate. Engaging and fair negotiations can set a precedent that a company is easy to do business with — or that there may be difficulties ahead.

Good sales negotiation strategies require:

• Significant preparation. Understand how flexible your company’s finance and legal teams are about negotiating price and contract terms. Going rogue and agreeing to terms your company won’t live up to isn’t a wise career move. It also erodes trust for future negotiations.
• Creative thinking. Make price discounts conditional on a volume purchase or a series of purchases within a specific timeframe.
• Empathy. Understanding the other party’s emotions and perspective on a purchase can help you find common ground with the buyer. If you detect that the buyer is nervous about making a significant project investment, you can offer information about warranty terms, project oversight, or customer testimonials. Assure the customer that your relationship doesn’t end when the contract is signed. Empaths can probe for underlying concerns or hesitations and address them before they scuttle the deal.
• Strong willpower. Define when a business transaction isn’t worth pursuing. I once had a prospect who was using a trial version of a product for approximately sixty days and was peppering me with technical support questions. I went above and beyond to support their project along the way and ultimately closed the deal, but it was only when I drew a line in the sand that we would turn off their proof of concept system if they didn’t subscribe to the SaaS platform for a year.

It’s like the Kenny Rogers song “The Gambler”: You’ve gotta know when to hold ‘em, know when to fold ‘em, know when to walk away, and know when to run. You may lose a deal or two by holding firm. Yet the customers that are worth winning will respect the value of your products, services, and policies. Compromising too much could also strike the wrong tone for a long-term relationship. Both sides need to have “skin in the game” for a relationship built on trust.

I’ve talked a lot about what makes a negotiation effective, and why you need to know how to negotiate effectively. Next, I’ll review the skills you need to negotiate like a pro.

1. Preparation is crucial.

Don’t go into a negotiation without a standard contract and pricing parameters. If the prospect is well-prepared, and you are winging it, the imbalance of power can undermine your credibility. Negotiating from a position of weakness is risky — even if you close a deal.

You must have an intimate understanding of your prospect‘s business, their pain points, and competitive solutions they’ll consider if your negotiation falls through. You might agree to terms and pricing out of desperation that you wouldn’t have if you had a better sense of what is at stake for both parties.

I once worked with a long-term customer who was looking for a new email archiving solution and needed to buy a considerable number of licenses for the application they were already using. The organization’s CTO said there were some stakeholders in the organization who wanted to replace our technology with a competitive solution, while others wanted to leverage their existing investment in my company’s technology.

The client wanted me to arrange for consultants to interview these stakeholders (at no cost to them) to determine which path forward they should take — and support them through a proof of concept with the email management system.

Now, there were regulatory issues with providing the scope of no-charge service that the client wanted. However, I could provide a promotional discount on the software that was equivalent to the service’s costs they wanted my company to swallow to keep their business. I was prepared with (and approved to offer) this arrangement when I met with the CTO. Ultimately, it extended the company’s relationship with the customer for many years, addressed the issues that the stakeholders were facing, and enriched our relationship with the customer.

During negotiations, you need to have a sense of the best alternative to a negotiated agreement (BATNA) for both parties. It establishes whether a negotiation is worth continuing. If stepping away from the negotiating table helps your business protect the value of your products and enables you to focus on winning other opportunities with less friction, it may be your best move.

Defining the BATNA line is vital for both parties to manage their risk, and to prevent them from entering into deals that incur unacceptable reputational damage or costs. Conduct thorough research to define whether a sale is worth winning based on a customer’s non-standard demands.

2. Clearly define how much latitude you have to negotiate terms.

Know your company’s sales strategy inside and out.

In the heat of the negotiations, a 30% discount might seem perfectly acceptable. Yet if offering that deep a discount is against your company’s policy, or above your paygrade, then doing so could prevent a deal from being fulfilled.

Clearly understand and define what your limitations are on price discounts and term modifications before you meet your negotiation partners at the table. Agreeing to a deal you can’t live up to is worse than not coming to an agreement at all.

I learned this lesson well from the Open Text sales operations team, and I’ve adhered to it since. You don’t have to commit to terms or pricing live on the phone. You can always flag a term the prospect finds problematic and have your colleagues in legal or finance decide whether to modify the term or keep it.

3. Active listening is key to negotiations.

Sometimes, when you present the terms of the deal, the prospect will counter your terms to their considerable favor. You are sometimes better off letting the buyer start the conversation.

Salespeople are often tempted to immediately jump in and offer a discount or terms adjustment in the interest of being accommodating. But there’s a line between being accommodating and being overly eager.

It pays to listen first and speak second during negotiations. You can‘t know what your prospect is thinking if you don’t let them present their perspective. Stay composed, have them reveal where they stand in the conversation, and use silence to your advantage.

In other words, follow the 70/30 rule of sales communication and listen more than you speak. Find opportunities to concede where it doesn’t cause your company undue risk or erode the value of your products or services. The best negotiations are when both parties win.

Silence can also be advantageous in sales negotiations after submitting a proposal. Silence communicates confidence and strength. It allows both parties to think through their next move and gives customers the opportunity to accept your offer or state any concerns they need to be addressed. Your price may be well within a customer’s range, but second-guessing your offer to break the silence can indicate that you question whether your pricing suits the value of what you have to offer.

4. Negotiate based on specific data points.

If the customer would like money knocked off your product‘s price tag, don’t offer a range of options. If you say something like, “Well, I could probably reduce the cost by between 15 and 20%,” you’re setting yourself short by suggesting your lowest acceptable price.

Who would accept 15% when 20% has been offered? Always quote one specific number or figure and then go higher or lower as necessary. The word “between” should be avoided at all costs.

Ambiguity is not your friend in sales negotiations.

5. Don’t “split the difference.”

Offering to “split the difference” on pricing can seem like a clean, easy way to arrive at an agreeable deal, but it usually does more harm than good.

For example, if your product or service costs $10,000 and the prospect wants a 50% discount, don’t counter with $7,500 to try and reach a quick settlement. It might seem fair and mutually beneficial, but those kinds of discounts are often rash and over the top.

When you offer a moderate discount that is close to your original price, the prospect may accept it because you are maintaining your position of strength — and you protect your profit margin. Don’t be afraid to use your company policies to hold firm in negotiations. Check in with your chain of command if the buyer insists on further concessions, but be prepared to walk away from the deal if an executive decision is made to stick to your offer.

6. Write terms at the right time.

Negotiations are often complicated. Offers and counteroffers or redlined terms can go back and forth multiple times in negotiations over complex agreements and high-value transactions. They often require representatives from legal and finance teams from both parties to navigate through to a mutually beneficial arrangement that protects both parties’ interests.

Several options will be proposed. Some conditions will be accepted, and others will be denied. That‘s why you don’t want to commit anything to writing until the meeting has ended — wait until all parties have verbally agreed to terms before you draft and table a legally binding contract.

7. Negotiating is often a team effort.

This tip might seem obvious, but many salespeople make the mistake of negotiating with the wrong person, or they try to negotiate a deal alone that requires oversight from multiple stakeholders.

A company can have several people who might come to the negotiating table without the authority to actually make business decisions. I was always happy to have a legal counsel, my sales manager, or a services principal on contract negotiation calls to ensure the right guardrails were in place to negotiate the best deal for the customer and my employer.

Free Resource: Get your call off on the right foot with these free call scripts.

If your customer has multiple executives from their leadership or legal team at a meeting or online conference, rally equal representation from your team to level the playing field. You can lead the conversation as far as you are able, and gracefully step back and allow your team to contribute as their roles dictate. Executives often like to sit at the negotiation table with their counterparts in your company when negotiating a strategic investment. See the move as relationship-building instead of compromising your control of the negotiations.

8. Give to receive.

Healthy salesperson-customer relationships are borne out of mutual respect and trust. They’re not a matter of salespeople bending over backward to accommodate buyers at every turn.

That‘s why salespeople shouldn’t accept every prospect’s demand without making some of their own. By keeping the negotiation a win-win for both sides, the salesperson and client remain on equal footing, which lays the groundwork for a productive relationship.

Recently, I’ve been working as a senior proposal writer for a business that serves airports, mixed-use commercial buildings, hospitals, and universities. I’ve worked on and participated in deals where the proposed terms and pricing aren’t the ultimate terms and price.

Even after my company had been selected as the customer’s first choice for strategic deals, the customer asked for a BAFO proposal, or Best and Final Offer. Sometimes, price changes; in other cases, it’s contract terms or products or services. It certainly keeps things interesting down to the final sign-off.

In these circumstances, concessions are often necessary to secure a signed contract and the beginning of a lasting relationship.

9. Negotiate more than fixed and operating costs.

The most commonly negotiated aspect of a sales deal is price, so salespeople should be prepared to talk about discounts — but discounts aren’t the only way sellers can sweeten the pot.

Price is tied to value, and value is tied to a customer‘s perception of and satisfaction with a product. That’s why you might want to consider offering other add-ons or freebies to a deal in lieu of a smaller price tag.

That being said, this isn‘t a hard and fast rule. It’s all situational. Sometimes a discount is the best course of action. If you make concessions, you need to consider the circumstances of the deal holistically — additional perks won’t always be more appropriate than hard financial concessions.

10. Handle objections with diplomacy

As a salesperson, handling objections is critical to every conversation you have.

Make sure you are clear on what a prospect is objecting to by confirming it back to them and then addressing it. (You can find more insights on expert objection handling by visiting this article on the HubSpot Blog.)

11. Stay calm.

Composure is key when participating in negotiations. Getting flustered or frustrated can turn your prospects off and undermine your ability to frame yourself as a helpful, agreeable, and consultative resource.

Remember that negotiation is, in large part, a relationship-building process. If you lose your cool, your prospects will be less inclined to form a long-term, productive partnership with you. Always keep your cool — for everyone’s sake.

12. Walk away if necessary.

Salespeople shouldn‘t be willing to accept any curveball a prospect throws at them. If demands become unreasonable or unprofitable for the company, don’t be afraid to walk away from the deal.

A customer who only agreed to sign if the contract was radically amended or the price was drastically dropped is bound to cause problems down the road.

Those kinds of changes also often signify that the prospect doesn‘t see much value in your offering. That means it’s only a matter of time before they become dissatisfied. Use your instincts, but also know the signs, and be able to walk away when necessary.

Thriving in Sales Negotiation

As I mentioned at the beginning of this article, negotiating skills are essential for success in the sales profession, but they can be challenging to develop without training and experience. I hope the information I shared here will help elevate your sales negotiation strategies and skills.

Maintaining composure, listening with empathy, understanding your offering’s value, and making silence your ally can help you thrive in sales negotiations.

Editor’s note: This post was originally published in March 2015 and has been updated for accuracy and comprehensiveness.

Every sales leader has been there: Your inbox is seemingly flooded with leads, but your pipeline feels emptier than ever.

Marketing keeps sending you “qualified” prospects, yet your sales reps are stuck wasting valuable time sifting through them, trying to figure out who’s actually ready to make a move.

The issue isn’t the number of leads; it’s knowing which ones are worth your reps’ time. But without a clear way to prioritize the best opportunities, even top-performing sales teams struggle to consistently hit their quotas.

So, what tactics can you introduce to ensure your team focuses on the leads with the highest conversion potential?

In a recent Marketing Against the Grain episode, Kieran and I dive into four powerful lead-scoring strategies that truly move the needle. Let’s explore how to surface the highest-potential leads and put your sales team in a position to succeed.

1. Combine customer fit and intent to better prioritize sales leads.

If you’re only scoring leads based on how well they fit your ideal customer profile (ICP), you’re missing a big piece of the sales success puzzle.

Effective lead scoring takes into account both segment fit — factors like job title, company size, and industry — and intent, which measures their interest through actions like demo requests, trial signups, or content engagement.

So, while fit tells you who could be a good customer, intent shows you who is actually ready to engage right now. Together, these elements give you a prioritized list of leads that are more likely to convert.

In the early days at HubSpot, we focused almost exclusively on fit-based scoring, making sure leads aligned with our ideal target audience. But we soon realized that even the most perfectly matched leads wouldn’t convert if they weren’t actively engaging.

Once we incorporated intent signals, however, our reps had better clarity on whom to prioritize and how to approach them. This simple shift improved close rates and created a wildly more efficient sales process.

Pro tip: Implement a balanced lead scoring system by tracking behaviors that consistently correlate with high conversion rates and assigning appropriate weights based on their impact. Tools like HubSpot’s lead scoring feature can help automate this process.

2. Keep it simple: Complex scoring systems kill sales adoption.

The more complicated your lead scoring model, the less likely your sales team is to use it.

Reps need a straightforward, easy-to-understand scoring system with clear priorities. If they have to guess how leads are being scored — or worse, if the score doesn’t align with their instincts — they’ll ignore it and revert to their own methods.

For example, at HubSpot, we initially experimented with models that included too many variables: layered fit criteria, advanced behavioral signals, and intent measurements. On paper, these models seemed logical, but in practice, reps didn’t trust them. Instead, they reverted to their personal lead-ranking systems, and the model was largely ignored.

The breakthrough came when we simplified the scoring model by prioritizing high-impact actions. For example, we focused on leads tied to conversion events with proven close rates, giving reps immediate, actionable leads they could trust.

Once they saw better results without needing to overthink the criteria, adoption improved, and lead scoring became an essential part of hitting quotas.

Expert insight: Don’t just give reps a scoring system — provide a complete outreach package. Include essential resources like email templates, call scripts, and recommended content to give them the confidence and support they need to engage high-priority leads effectively.

3. Use HINKLs to expand your funnel and hit sales quotas.

At HubSpot, we came up with the concept of HINKLs (High Intent Non-Qualified Leads) when we realized that we needed a way to grow beyond traditional product-qualified leads (PQLs).

We define HINKLs as leads that haven’t directly raised their hand to talk to sales — through actions like demo requests or trial sign-ups — but whose behavior signals intent. For example, they might interact with product features, templates, or other high-value content similar to leads who do convert.

Our growth team developed HINKLs by running regression analysis on closed deals and identifying behaviors that strongly correlated with conversions. This allowed us to surface leads that weren’t immediately obvious but had a high likelihood of upgrading or purchasing.

Expanding the sales funnel with HINKLs gave our reps access to qualified leads that weren’t previously on their radar, helping them consistently hit quotas by targeting hidden, high-potential prospects.

4. Establish — and maintain — feedback loops with sales.

Even the best lead scoring model will fail if you don’t listen to your sales team.

Reps are on the front lines, interacting with leads daily, and their insights are crucial for refining your scoring criteria. To keep your model relevant, establish regular feedback sessions — whether through formal rep councils or informal check-ins — and continuously adjust based on what’s actually working.

In HubSpot’s early days, feedback was simple. We could shout across the room and get instant answers. But as we scaled, we introduced structured feedback loops, including a monthly rep council where we reviewed lead performance and made necessary adjustments.

This process kept the model dynamic and aligned with real-world sales needs, increasing trust and adoption while improving lead quality over time.

Pro tip: Pair qualitative feedback from sales with performance metrics. For example, combine both lead conversion rates and rep feedback to uncover the nuanced ‘why’ behind leads that convert or stall, leading to smarter and faster scoring adjustments.

Drive Sales Success with Smarter Lead Scoring

By combining customer fit, intent signals, and constant feedback, you can refine your lead scoring model to drive more targeted outreach, boost sales conversions, and keep your pipeline consistently full. Remember: It’s not about finding every lead — it’s about finding the right ones and then empowering your team to close deals faster and more efficiently.

To learn more about lead-scoring tactics and marketing growth strategies, check out the full episode of Marketing Against the Grain below:

This blog series is in partnership with Marketing Against the Grain, the video podcast. It digs deeper into ideas shared by marketing leaders Kipp Bodnar (HubSpot’s CMO) and Kieran Flanagan (SVP, Marketing at HubSpot) as they unpack growth strategies and learn from standout founders and peers.