What are the stages of a sales pipeline?

Typical sales pipeline stages are: 1) Lead (new prospects), 2) Qualified (budget/need confirmed), 3) Proposal (quote sent), 4) Negotiation (discussing terms), 5) Closed Won (deal signed). B2B pipelines usually have 5-7 stages. Customize stages to match your actual sales process, not generic templates.

What's the difference between a sales pipeline and a sales funnel?

Sales pipeline shows individual deals and where they are in your process (deal-focused, for sales reps). Sales funnel shows aggregate conversion rates at each stage (metrics-focused, for managers). Pipeline answers 'which deals will close this month?' Funnel answers 'what percentage of leads become customers?'

How do you build a sales pipeline?

To build a sales pipeline: 1) Map your sales process from lead to customer, 2) Define 4-7 stages with clear entry/exit criteria, 3) Choose CRM software with visual pipeline (like Lead16), 4) Add all active deals to appropriate stages, 5) Set stage timeframes (max days per stage), 6) Review weekly to keep it healthy.

What is a Sales Pipeline?

A sales pipeline is a visual representation of your sales process that shows all active deals organized by stage (Lead, Qualified, Proposal, Negotiation, Closed). It tracks prospects from first contact to closed sale, helping you forecast revenue, identify bottlenecks, and ensure no deals fall through the cracks. CRM software like Lead16 provides visual pipeline management with drag-and-drop boards.

How a Sales Pipeline Works

Think of a sales pipeline like an assembly line for revenue. Each deal enters at one end (Lead) and moves through stages until it exits as either Won or Lost. Proper lead management ensures deals move efficiently through your pipeline without getting stuck.

📊 Example Sales Pipeline

Stage	Deals	Total Value	Avg Days in Stage	Next Action
Lead	23	$115,000	2 days	Qualify budget/need
Qualified	12	$180,000	8 days	Schedule demo
Proposal	8	$240,000	12 days	Follow up on proposal
Negotiation	4	$150,000	18 days	Address objections
Closed Won	15	$425,000	—	Send invoice

At a glance: 47 active deals worth $685K in pipeline, average 40-day sales cycle

Sales Pipeline Stages Explained

Most B2B sales pipelines follow this structure:

Stage 1

Lead

Definition: New prospect who has shown interest but not yet qualified

Entry criteria: Contact info captured, initial interest expressed

Exit criteria: Budget, Authority, Need, Timeline (BANT) qualified

Typical duration: 1-3 days

Rep action: Discovery call to qualify budget and need

Stage 2

Qualified

Definition: Confirmed they have budget, authority, need, timeline

Entry criteria: Passed BANT qualification

Exit criteria: Demo or discovery call completed

Typical duration: 5-10 days

Rep action: Schedule and conduct product demo

Stage 3

Proposal

Definition: Formal proposal or quote sent to prospect

Entry criteria: Demo completed, requirements gathered

Exit criteria: Proposal reviewed, feedback received

Typical duration: 7-14 days

Rep action: Follow up, answer questions, address concerns

Stage 4

Negotiation

Definition: Discussing final terms, pricing, timeline

Entry criteria: Interested in moving forward, negotiating details

Exit criteria: Agreement on all terms (or deal lost)

Typical duration: 7-21 days

Rep action: Handle objections, finalize contract

Stage 5

Closed Won

Definition: Contract signed, deal closed successfully

Entry criteria: Verbal or written commitment to buy

Exit criteria: Payment received, customer onboarded

Typical duration: N/A (archived)

Rep action: Send invoice from CRM, begin customer onboarding

Sales Pipeline vs Sales Funnel

These terms are often confused, but they're different:

Aspect	Sales Pipeline	Sales Funnel
Focus	Individual deals	Aggregate conversion rates
View	Horizontal stages	Vertical funnel (wide to narrow)
Purpose	Manage active deals	Measure process efficiency
User	Sales reps	Sales managers/analysts
Answers	"Which deals will close this month?"	"What % of leads become customers?"
Example	"23 deals in Lead stage worth $115K"	"500 leads → 100 qualified (20%)"

You need both: Pipeline for day-to-day deal management, funnel for analyzing process health.

Key Sales Pipeline Metrics

1. Pipeline Value

Total value of all deals in pipeline. Rule of thumb: maintain 3-5X your revenue goal.

Goal: Close $100K this quarter → Need $300-500K in pipeline
Less than 3X? Need more leads
More than 8X? Poor conversion rates

2. Pipeline Velocity

How fast deals move through pipeline. Formula:

Pipeline Velocity =

(# Deals × Avg Deal Size × Win Rate) ÷ Sales Cycle Length

3. Conversion Rates (Stage to Stage)

Lead → Qualified: Target 40-60%
Qualified → Proposal: Target 50-70%
Proposal → Negotiation: Target 40-60%
Negotiation → Closed Won: Target 60-80%

4. Average Deal Size

Total revenue ÷ number of deals closed. Track over time:

Increasing = moving upmarket (good)
Decreasing = discounting too much or going downmarket

5. Sales Cycle Length

Average days from Lead to Closed Won. Shorter is usually better.

B2B SaaS: 30-90 days
Consulting: 14-45 days
Enterprise: 120-365 days

6. Win Rate

Deals won ÷ total deals closed (won + lost). Target: 20-40%.

Why You Need a Sales Pipeline

Without a Pipeline

❌ Can't forecast revenue accurately
❌ Deals forgotten or fall through cracks
❌ No visibility into bottlenecks
❌ Guessing which deals need attention
❌ Can't measure team performance
❌ No way to plan hiring or resources
❌ Constant surprises (good and bad)

With a Pipeline

✅ Accurate revenue forecasting
✅ Every deal tracked systematically
✅ Identify and fix bottlenecks
✅ Prioritize high-value deals
✅ Measure and improve win rates
✅ Data-driven hiring decisions
✅ Predictable, scalable growth

Research shows:

Companies with defined sales pipelines see 28% higher revenue growth (Harvard Business Review)

How to Build a Sales Pipeline

Map your sales process: Write down every step from lead to customer
Define stages: Group activities into 4-7 clear stages
Set entry/exit criteria: What qualifies a deal to move to next stage?
Choose CRM software: Use visual pipeline tool (like Lead16, not spreadsheets)
Add deals: Import all active opportunities into appropriate stages
Set timeframes: Define max days per stage (e.g., Proposal max 14 days)
Review weekly: Clean up stale deals, move deals forward or disqualify

Sales Pipeline Management Best Practices

1. Keep It Clean

Review pipeline weekly. Remove dead deals. Deals sitting in one stage 2X past target duration? Call them or close-lost them.

2. One Deal, One Owner

Never "share" ownership. Every deal needs exactly one person accountable.

3. Always Have Next Action

Every deal should have: "Next action: [specific task] by [date]"

4. Qualify Ruthlessly

Better to disqualify early than waste weeks on tire-kickers. Use BANT framework.

5. Use Visual Pipeline Software

Spreadsheets don't scale past 20-30 deals. Use drag-and-drop pipeline (humans process visual info 60,000X faster than text). Explore Lead16's visual pipeline features or check pricing plans to get started.

6. Track Metrics Weekly

Monitor pipeline value, conversion rates, cycle length, win rate. What gets measured gets managed.

Common Pipeline Mistakes

Mistake #1: Too Many Stages

8+ stages = analysis paralysis. Keep it simple: 4-6 stages max.

Mistake #2: Keeping Dead Deals

That $500K deal from 6 months ago is dead. Close-lost it and move on.

Mistake #3: No Clear Stage Definitions

Reps guessing which stage = bad data. Write down entry/exit criteria.

Mistake #4: Using Spreadsheets

Spreadsheets don't scale, don't send reminders, don't automate. Use real CRM.

How Lead16 Makes Pipeline Management Easy

Lead16 Visual Pipeline Features

✓ Drag-and-drop kanban board - Move deals between stages instantly
✓ Color-coded cards - See which deals are stuck at a glance
✓ Automatic reminders - Never forget to follow up
✓ Pipeline analytics - Track conversion rates, velocity, win rates
✓ Custom stages - Match your actual sales process
✓ Mobile access - Update pipeline from anywhere
✓ Works offline - Only CRM that syncs when back online
✓ Free forever plan - Visual pipeline at no cost

Try Pipeline Management Free

Sales Pipeline Templates by Industry

B2B SaaS

Stages: Lead → Qualified → Demo → Trial → Proposal → Closed Won

Avg cycle: 30-60 days | Key metric: Trial-to-paid conversion, MRR growth

Consulting/Agency

Stages: Inquiry → Discovery Call → Proposal → Negotiation → Contract Signed

Avg cycle: 14-45 days | Key metric: Proposal-to-contract rate. Invoice directly from CRM when deals close.

Real Estate

Stages: Inquiry → Showing → Interested → Offer → Negotiation → Under Contract → Closed

Avg cycle: 60-120 days | Key metric: Showings per closing

Manufacturing

Stages: Lead → Qualified → Sample Sent → Negotiation → PO Received → Delivered

Avg cycle: 30-90 days | Key metric: Sample-to-PO conversion

Start Managing Your Pipeline Today

Lead16 makes pipeline management simple with visual boards, automatic tracking, and real-time analytics. Free plan includes full pipeline features.