How to calculate revenue from your leads, step by step
You can estimate what your website is worth with four numbers: how many people visit, the share who become leads, the share of leads who become customers, and what a typical customer pays you.
The formula
Visitors × lead rate = leads. Leads × close rate = customers. Customers × average sale value = monthly revenue. Multiply by 12 for the yearly figure.
For example, 10,000 visitors at a 2% lead rate gives 200 leads. At a 10% close rate that is 20 customers, and at an average sale of S$1,500 that is S$30,000 a month, or S$360,000 a year.
Where to find each number
Visitors come from your website analytics for a typical month. A lead is anyone who enquires, books a call or signs up, so divide leads by visitors for your lead rate. Divide customers by leads for your close rate, and use what a typical new customer pays for the sale value.
What this number is, and is not
This is revenue, not profit. It assumes your rates stay the same every month and leaves out costs, refunds and repeat sales. Treat it as a planning figure, not a forecast.
Try it with your own numbers
The free LeadFlow calculator does the sums instantly as you type or drag a slider, and shows your monthly and yearly revenue side by side. You can read more about it on the LeadFlow page. When you are done, see which change is worth the most in Is your website conversion rate good?