BDM interview prep

[walestelesales]

I'm looking at a new BD role - not sure if I'm overcomplicating things with the answer to one of these questions, number 3 in particular.

The sale is to a client who in turn have suppliers who sign up at a cost - for example a client signs up and then contractor's sign up at a cost of 1k each

. Revenue Expectations​

Prompt: What kind of sales pipeline and revenue results would you aim for in the first 6 months?


Context clues:

• Sales cycle: 8 weeks
• Monthly target: £30,000
• AOV: £1,000 per contractor sale
• Avg supply chain per client: 100
• Conversion rate: 30%

Just can't seem to work out volume of pipeline I'd need as in coverage and then anticipated sales within first 6 months.

Hopefully someone can put me in the right direction.

Thanks in advance

 

[Paul Kelly ICHYB]

What do you think it is?

How are you calculating it? Maybe we can correct your calculations.

 

[walestelesales]

What do you think it is?

How are you calculating it? Maybe we can correct your calculations.

Thanks for the reply Paul.

How I see it each "Client" based on them having 100 suppliers, gives you an 100k opportunity, of this 100k opportunity, typically 30% of their suppliers convert = 30k

This is the answer i've come up with so far, as the important factor is pipeline coverage.

6–8 qualified client opportunities by Month 2. From Month 3 onwards, to hit the £30k/month target (30 contractor sign-ups), I’d aim to close at least 1 client per month, based on the 100-supplier average and 30% conversion. That means maintaining a rolling pipeline of 12–16 active opportunities ensure consistent delivery against target. Over 6 months, this would ideally deliver 4–5 client wins, equating to 120–150 contractor sign-ups and revenue of £120k–£150k

Before the sale and qualification, I'd have "leads" so based on the above - Leads needed: 80–100. which then progress into an opportunity.

Hopefully this makes sense.

 

[fisicx]

How are you getting these leads?

 

[walestelesales]

Good point (although that is a question to answer earlier in the presentation) so strip it back even further, attend X amount of Networking events, need X amount of calls and X amount of emails.

Is that what you were trying to get me to think about?

 

[fisicx]

Yes. It could be to get those 100 leads you need to make 1000 phone calls or attend 200 networking events. The whole thing may not be viable.