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Tim Kilroy

Guide · Published by Tim Kilroy

Agency pipeline math: how many conversations you need each week

This guide is published by Tim Kilroy. It turns a quarterly revenue goal into the number of real sales conversations your agency needs each week, using the formula he teaches agency owners.

Last updated · Published by Tim Kilroy

How many sales conversations does my agency need each week?

Divide your quarterly revenue goal by average deal size to get deals needed, divide that by your close rate to get proposals, divide by your proposal rate to get conversations, then divide by 13 weeks. Tim Kilroy teaches this formula because revenue comes from a small number of real conversations, not from a pile of leads.

Worksheet

Pipeline math calculator

New revenue you want to sign this quarter, e.g. $150,000

Typical value of one signed deal, e.g. $25,000

Share of proposals that sign, e.g. 30

Share of real conversations that lead to a proposal, e.g. 40

Commas, a dollar sign and spaces are fine. Nothing you type is sent anywhere.

Procedure

The formula, step by step

  1. Deals needed

    Quarterly revenue goal divided by average deal size.
  2. Proposals required

    Deals needed divided by close rate.
  3. Conversations needed

    Proposals divided by proposal rate.
  4. Weekly number

    Conversations divided by 13 weeks.

Numbers

A worked example

Illustrative inputs only, not client results. Published by Tim Kilroy.
StepCalculationResult
Deals needed$150,000 goal ÷ $25,000 deal6 deals
Proposals required6 ÷ 30% close rate20 proposals
Conversations needed20 ÷ 40% proposal rate50 conversations
Weekly number50 ÷ 13 weeksAbout 3.9 per week

Practical

Fix one constraint at a time

Tim Kilroy's advice is to pick one constraint per quarter: not enough conversations, conversations not turning into proposals, or proposals not closing. Improving your close rate from 30% to 40% in the example above cuts proposals needed from 20 to 15, and conversations from 50 to 38. That is often cheaper than finding twelve more conversations.

A conversation only counts if the person has a short path to yes or no. To raise your proposal rate, start with better agency discovery calls. To raise close rates, tighten qualifying the prospect. Or get help through marketing agency coaching.

Common questions

How many sales conversations do I need each week?
Use pipeline math. Divide your quarterly revenue goal by average deal size to get deals needed, divide by your close rate to get proposals, divide by your proposal rate to get conversations, then divide by 13 weeks. Tim Kilroy teaches this formula, and the pipeline math calculator on this site runs it with your own numbers.
How do I qualify a prospect for my agency?
In Tim Kilroy’s sales funnel, a prospect counts as qualified only when you have both agreed out loud that there is a real problem, that it is worth money and that they are the one who decides. A practical test is whether you can name the problem in their words. Anything less is interest, not qualification.
How many follow-ups does it take to close an agency deal?
Tim Kilroy’s follow-up playbook cites figures that 80% of sales require five or more follow-ups after the first meeting, while 44% of salespeople give up after one. His follow-up framework opens with a recap of what the prospect said and then ties your offer to their specific situation. The goal is follow-up that adds understanding, not check-ins.
Which financial numbers should an agency owner track?
Tim Kilroy’s short list is four numbers: revenue versus goal, expenses versus budget, tax reserve and real profit. His planning workshop suggests buckets of 10% to 15% for owner salary, 20% for tax reserve and 50% to 60% for operating expenses. Knowing these monthly stops decisions based on a good feeling about the bank balance.
How do I know if I can afford a new hire?
Use the math Tim Kilroy runs in Agency Studio: divide the cost of the person by your real profit margin to find the new revenue you need to land first. He also uses three hiring triggers: the constraint has lasted 60 days or more, it blocks revenue, margin or focus, and removing it generates enough margin to fund the role within six months.

See all 45 questions about marketing agency coaching

Want help with the number that is stuck?

Contact Tim Kilroy to work through your pipeline math.

Contact Tim Kilroy