Predictable Revenue: How it works, application, sales funnel and specialization Aaron Ross

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Predictable revenue is a methodology that uses good prospecting (Outbound) and sales management practices to ensure the company's financial sustainability. It is this sustainability that will make businesses thrive, survive times of crisis and establish themselves.

The term predictable revenue was coined in the last decade by writer Aaron Ross and has become increasingly popular in discussions about entrepreneurship. In this text, we will provide more details about what it is, its importance and how to have predictable revenue in your company. Check it out!

Understand what predictable revenue means
Predictable revenue is a methodology that determines how much a company or business will earn in a set time. This predictability helps decision-makers think about the next steps and investments.

The main way to raise money is through lead generation . And this generation must be done in an optimized way. In other words, it is not guaranteed by a large team, for example. But rather through goal setting, team training, management efficiency and strategic planning.

Find out when the concept of predictable revenue emerged
The “father” of the term, as we said, is the writer Aaron Ross . He became known in Brazil for actively participating in the founding of famous marketing companies in the country, in addition to his work that launched the term, predictable revenue, to the world.

A sales success, Ross’s book is called by some as “The Silicon Valley business bible”. After all, the author’s career is full of successes in the business world. For Aaron Ross, the lack of predictability in the B2B market is one of the biggest problems faced in the area. One solution to this would be to raise awareness of each stage of the funnel and how each company should work step by step.

Sales funnel based on predictable revenue
The concept of predictable revenue values ​​each stage of the sales funnel . More than that, it values ​​the awareness and preparation of the sales team for each of them. Any misstep or action taken without preparation can jeopardize the closing of a sale.

The author argues that there must be lead nurturing. The potential customer uruguay telemarketing data must understand more about the product or service and have access to quality content that convinces them to close the deal. To do this, the marketing and sales team must have:

Prospecting
Prospecting plays an important role in predictable revenue, and is basically the search, analysis and acquisition of potential customers.

To turn these prospects into real customers, you need to direct a part of your team to this process . This way, this group will create strategies to attract prospects and convince them to use the company's services. With this action, it will be easier to achieve predictable revenue, since only customers generate revenue for the business, not prospects.

Leads
When prospects begin to show some kind of interest in the company's products or the brand as a whole, they reach the lead stage. At this point, these people are closer to becoming customers and, consequently, contributing to the expected revenue.

Leads can reach your company through a variety of means, with prospecting and referrals from friends being good examples. The difference between prospects and leads is that the latter already know what their needs are and which services solve their problems.

Leads are not yet customers, but they are more likely to contribute to predictable revenue in the future. They are at the stage where they are interested in a product offered by the company, seek information about it and consider the possibility of purchasing it.

Banner about lead registration with artificial intelligence.

Seeds
Before they actually become customers , leads are separated into types. The first and most popular classification of all is seeds, which are more likely to become consumers and make purchases.

These leads are those that were attracted organically and show great potential for the company, but, just like real seeds, they need to be patiently “cared for”. Therefore, in order to contribute to predictable revenue, seeds need well-defined stimuli, such as marketing actions and a good relationship with the company. This way, they will develop trust and can be won over as customers.

Network
The term network, or nets in English, refers to another type of leads. Basically, nets are those that were reached by generalist marketing strategies, such as traditional advertising, which reach different audiences.

The name comes from the analogy with a fishing net. In a net like this, it is not known for sure which fish will be caught, and what matters is the quantity, not the species. Thus, the network attracts a good number of people, but not all of them will turn from leads into customers. Many will observe the services offered, but will not show any real interest in consuming them.

In this case, it is essential that your team analyzes which of these leads should remain in the sales funnel and what is the best way to attract them and turn them into customers.

Spear
A man holds a cell phone in his hands. Above the cell phone we find a growth graph, a result obtained by predictable revenue.

The last type of lead is the spear. It also uses the analogy of fishing, being the opposite of the net, since, with the spear, it is possible to catch exactly the fish of interest. In this classification, marketing strategies are more targeted and accurate, generally practiced in the prospecting process, which goes after only those individuals who match the company's ideal customer profile.

So, people who are assigned to this lead pool are more likely to be future customers, and that's great for predictable revenue.