Lead Velocity Rate

Also called LVR

Lead velocity rate: the month-over-month growth in the number of qualified leads. A forward-looking indicator of future revenue.

LVR = (qualified leads this month - last month) / last month

Why it matters

Because leads precede revenue, LVR predicts sales growth before it appears in the numbers. A rising LVR is one of the earliest signals that revenue growth is coming; a falling one is an early warning.

For example

Qualified leads grow from 100 to 130 in a month, a 30 percent lead velocity rate that predicts revenue growth a couple of quarters out.

Related terms

Lead Generation Leading Indicator Sales Pipeline

Go deeper

See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.

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