Sales-Led Growth

What's in this model

Key inputs (6)

LeadsQualification RateOpportunity Conversion RateClose RateAvg. Contract ValueExpansion Rate

Key results (6)

Qualified LeadsOpportunitiesClosed DealsNew ARRExpansion ARRTotal ARR

Every company needs a Go-to-Market motion. Do you know what yours runs on? If your Sales team is leading the charge, then surprise, your company relies on Sales-Led Growth (SLG). Successful SLG companies always have two things in common: targeting high-quality Leads, and high Avg. Contract Value offers. Conversion at each stage of the funnel is important, but a SLG company runs best when the bookends are optimized.

Other Paths

Product-Led Growth

Every company needs a Go-to-Market motion. Do you know what yours runs on? If Word of Mouth and self-service drives your revenue, then your company relies on Product-Led Growth (PLG). Successful PLG companies obsess over two things: an intuitive product, and virality. This flywheel comes from how many new Sign-ups are driven from existing ones. PLG companies run best on quick sales cycles and strong social sharing.

Updated Apr 29, 2026

Marketing Budget Allocation

Congratulations, you've set your Marketing budget. Now where do you allocate those dollars to drive the most cost-efficient impact to the business? Given a fixed dollar budget, this model shows the impact of your marketing spend across 3 main categories: Paid Search, Paid Social, and Events. How effective those channels are for your business determines the Total Marketing Qualified Leads (MQLs) and Blended Cost per Lead (CPL) generated from your budget. If your planned Marketing spend isn't yielding the Top-of-Funnel results to meet your goals, which channel is worth doubling down on?

Updated Apr 29, 2026

Market Sizing

Determining the size of the pie your company is taking a slice out of can quickly become an exercise in grandeur. That being said, having a standard, top-down market sizing model will often be one of the first steps when analyzing a new opportunity. Definitions: TAM – Total Addressable Market: the full revenue opportunity if you captured 100% of every potential customer globally. SAM – Serviceable Addressable Market: the slice of TAM you can realistically reach given your geography, segment focus, and go-to-market. SOM – Serviceable Obtainable Market: the portion of SAM you can realistically capture in the near term given competition and execution. Like any standard funnel, the primary drivers are the volume at the top and the throughput at each level. Let this be a check against your proposed investment in a project rather than your pricing strategy.

Updated Apr 29, 2026

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