Pipeline
Also: Sales pipeline, Deal pipeline, Opportunity pipeline, Pipe, Pipeline commercial (French), Tunnel de vente (French)
All active sales opportunities across the stages of the sales process, together with their combined potential value and probability of closing.
What It Is
A pipeline is the structured view of all active sales opportunities, organized by the stage each one has reached in the sales process, along with their combined potential value. Each opportunity moves through defined stages, from initial contact to a closed deal (won or lost).
Think of it as a snapshot that answers three questions at once:
- How many deals are in play?
- What stage is each deal at?
- How much revenue could they generate if they close?
The pipeline is distinct from a forecast. The pipeline lists everything in motion; the forecast applies probability to estimate what will realistically close in a given period.
Why it matters
The pipeline is the primary early warning system for revenue. It reveals problems before they show up in the financial statements.
- Predictability: A healthy, balanced pipeline supports reliable revenue forecasting.
- Diagnosis: Bottlenecks at a specific stage point to a process problem (for example, many deals stalling after the demo).
- Coverage: Comparing pipeline value to the sales target shows whether there is enough volume to hit the number.
- Resource allocation: It guides where sales, marketing, and finance should focus effort and budget.
How it is used in practice
- Stages are defined (for example: Lead, Qualified, Proposal, Negotiation, Closed).
- Each opportunity carries a value, a stage, and often a close probability.
- Weighted pipeline multiplies deal value by probability to estimate expected revenue.
- Pipeline coverage ratio (total pipeline value divided by the target) is monitored; a common benchmark is 3x to 4x.
- Velocity measures how fast deals move through stages and where they slow down.
Worked Example
A team has a quarterly target of 500,000 EUR. Its pipeline:
- Qualified: 400,000 EUR at 20% probability = 80,000 EUR weighted
- Proposal: 300,000 EUR at 50% = 150,000 EUR weighted
- Negotiation: 200,000 EUR at 80% = 160,000 EUR weighted
Total pipeline: 900,000 EUR. Weighted pipeline: 390,000 EUR.
Coverage is 900,000 / 500,000 = 1.8x, below the 3x benchmark. The weighted total (390,000 EUR) also falls short of the 500,000 EUR target. The signal is clear: not enough qualified volume, so the team needs more top of funnel activity now to protect next quarter.
See also
Frequently asked questions
What is a sales pipeline?
A sales pipeline is the structured view of every active sales opportunity, sorted by the stage it has reached in the sales process, with their combined potential value. It answers three questions at once: how many deals are in play, what stage each one sits at, and how much revenue they would generate if they closed. Stages are typically defined as Lead, Qualified, Proposal, Negotiation and Closed.
What is the difference between a pipeline and a forecast?
The pipeline lists everything in motion; the forecast applies probability to estimate what will realistically close in a given period. A pipeline of 900,000 EUR can correspond to a much smaller forecast once each deal is weighted by its close probability. Confusing the two leads teams to celebrate volume that will never convert.
Why should a CFO care about the sales pipeline and not just the closed revenue?
Because the pipeline is the earliest warning system for revenue: it shows problems weeks or months before they appear in the financial statements. It also indicates whether there is enough volume in motion to hit the target, which drives budget and headcount decisions. Pipeline is relevant to marketing, finance and general management, not only to the sales team.
How do you calculate a weighted pipeline?
Multiply each deal's value by its close probability, then sum the results. With 400,000 EUR at 20%, 300,000 EUR at 50% and 200,000 EUR at 80%, the weighted pipeline is 80,000 + 150,000 + 160,000 = 390,000 EUR, against a raw pipeline of 900,000 EUR. The weighted figure is what you compare to the target.
What pipeline coverage ratio indicates a problem?
Coverage is total pipeline value divided by the target, and a common benchmark is 3x to 4x. A team with 900,000 EUR of pipeline against a 500,000 EUR quarterly target sits at 1.8x, well below that range, which signals a shortage of qualified volume. The fix is more top of funnel activity now, since deals created today close in a later period.