Open Opportunities (Weighted Revenue)

Date created: Oct 25, 2022  •   Last updated: Feb 01, 2023

What is Open Opportunities (Weighted Revenue)?

Open Opportunities (Weighted Revenue) is calculated by multiplying the expected revenue of a product or service by its estimated close rate to determine potential revenue. Open Weighted Revenue is a metric that helps businesses to determine the financial value of potential opportunities. It looks at opportunities from both a qualitative and quantitative perspective, taking into account the customer's readiness to buy, market demand, and external factors that may progress or delay the ability to close the deal.

Open Opportunities (Weighted Revenue) Formula

ƒ (Expected Revenue 1 * Probability to Close 1) + (Expected Revenue 2 * Probability to Close 2) + (Expected Revenue n * Probability to Close n)

How to calculate Open Opportunities (Weighted Revenue)

Company A has a volume-based business and generates 200 product-qualified leads (PQLs) every month for a product that has a subscription price of $3,000 annually. Of these PQLs, the probability of a paid customer win is 20%. Therefore, the Weighted Revenue potential for the 200 PQLs is $120K. Company B sells big-ticket items. An account representative is working on two deals. The first one, worth $100K, is well progressed and currently seeking final sign-off by the CFO. The weighting or probability assigned to this deal is 90%. The second deal, worth $75K is still in the qualifying stages and weighted at 30%. Therefore, the Open Weighted Revenue potential for these two deals is $112.5K.

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More about Open Opportunities (Weighted Revenue)

It is important to monitor this metric on a regular basis as it can give insight into unrealized potential in your business and help inform forecasting decisions.

If your organization has a sales-led focus, you can increase the weighted revenue of open opportunities by putting extra effort into training sales reps, improving the existing processes, and updating sales materials.

If your organization has a product-led, go-to-market focus, then open weighted revenue can be improved by focusing on the quality of the funnel. Start by evaluating the fit of users visiting your website and the messaging and promise of your product value. Then, look at improving your product onboarding and activation journeys. Finally, ensure your pricing model clearly maps to the value proposition users are experiencing.