[GTM glossary](/glossary.txt) Sales pipeline RevOps & Pipeline # Sales pipeline In short A sales pipeline is the set of all open opportunities a sales team is working, organized by the stage each deal has reached. It shows who is close to buying, who is stuck, and how much potential revenue sits at each step. The pipeline is a snapshot of deals in motion. It is different from the sales process, which is the set of steps reps follow, and from the sales funnel, which is a broader model that includes leads that have not become opportunities yet. ## What a sales pipeline contains Each pipeline entry is an opportunity tied to an account, a contact, an owner, an amount, and a stage. Teams usually add an expected close date and a next step. * **Stages:** Ordered milestones such as discovery, demo, proposal, negotiation, and closed won or lost. * **Amount:** The expected contract value of the deal. * **Close date:** When the rep expects the deal to sign. It drives forecasting. * **Next step:** The single action that moves the deal forward, with a date. --- ## How to build a pipeline that works ### Define stages by buyer actions A stage should end when the buyer does something, such as agreeing to a trial or introducing a finance contact. Stages based on rep activity, like "sent email", make the pipeline look healthier than it is. ### Write exit criteria For each stage, list what must be true before a deal moves on. Reps then move deals consistently, and managers can compare like with like. ### Keep it clean Close out dead deals, require a close date and next step, and review stale opportunities weekly. A pipeline full of old deals produces forecasts nobody trusts. --- ## Example Say a team has 40 open deals worth a combined 800,000 in the pipeline. Ten are in discovery, fifteen in demo, ten in proposal, and five in negotiation. Looking at the split tells the manager that late stages are thin, so the team should run more discovery calls now to keep next quarter covered. --- ## Metrics to watch * **Pipeline coverage:** Open pipeline compared with the revenue target. * **Stage conversion:** The share of deals that move from one stage to the next. * **Sales cycle length:** Days from creation to close. * **Pipeline age:** How long deals sit in each stage before moving or dying. --- ## Common mistakes * **Counting unqualified deals:** Opportunities with no budget or buyer contact inflate totals. * **Too many stages:** Ten or more stages make reporting noisy and reps inconsistent. * **Ignoring the top:** Teams watch late-stage deals and forget that next quarter's pipeline is created now. --- ## Sales pipeline FAQs **What is a sales pipeline?** A sales pipeline is a structured view of every open deal a sales team is working, grouped by stage from first conversation to closed won or lost. It helps teams see progress, spot stuck deals, and estimate upcoming revenue. **What are the stages of a sales pipeline?** Common stages are qualification, discovery, demo or evaluation, proposal, negotiation, and closed won or closed lost. The exact names vary by company, but each stage should end with a clear buyer action rather than a rep activity. **How do you build a sales pipeline from scratch?** Map how your best customers actually bought, turn that into three to seven stages with clear exit criteria, set required fields in your CRM, and review the pipeline weekly. Then keep adding new opportunities at the top so later stages stay full. **What is the difference between a sales pipeline and a sales funnel?** A sales pipeline tracks specific open deals through stages and is used for forecasting and deal management. A sales funnel is a broader model of how many leads or visitors become customers, often including stages before an opportunity exists. Share term --- ## More related phrases * [Opportunity management](/glossary/opportunity-management.txt) * [Pipeline generation](/glossary/pipeline-generation.txt) * [Deal stages](/glossary/deal-stages.txt) ## Similar phrases * [Pipeline management](/glossary/pipeline-management.txt) Pipeline management is the practice of monitoring and steering all open deals through the sales process, balancing volume, quality, and timing to hit revenue targets predictably. * [Pipeline stages](/glossary/pipeline-stages.txt) Pipeline stages are the defined steps a deal passes through from first qualification to closed-won or closed-lost, each with clear entry and exit criteria that keep reporting consistent. * [Sales funnel](/glossary/sales-funnel.txt) A sales funnel is the staged path prospects take from first awareness to becoming a customer, narrowing as fewer people move through each stage. * [Pipeline coverage](/glossary/pipeline-coverage.txt) Pipeline coverage is the ratio of open pipeline value to the sales target for a period, used to judge whether there are enough deals to reach quota. * [Weighted pipeline](/glossary/weighted-pipeline.txt) Weighted pipeline adjusts the value of each open deal by its probability of closing, giving a more realistic estimate of expected revenue than the raw pipeline total.