# Sales-Led Growth

> 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.

Published model on Paths: https://getpaths.io/p/sales-led-growth
Values below are the base case of the published snapshot.

## Drivers

- Leads: 500
- Qualification Rate: 40%
- Opportunity Conversion Rate: 50%
- Close Rate: 25%
- Avg. Contract Value: $12,000.00
- Expansion Rate: 15%

## Formulas

- Qualified Leads = Leads * Qualification Rate   -> 200
- Opportunities = Qualified Leads * Opportunity Conversion Rate  -> 100
- Closed Deals = Opportunities * Close Rate  -> 25
- New ARR = Closed Deals * Avg. Contract Value  -> $300,000.00
- Expansion ARR = New ARR * Expansion Rate  -> $45,000.00
- Total ARR = New ARR + Expansion ARR  -> $345,000.00