A pipeline report is a great way to predict success with selling online advertising.

Imagine an account executive who makes numerous pitches over time. One day the manager wonders why the AE isn’t making budget.

The manager asks a few simple questions. How many proposals are in the field? How large is each proposal? What is the likelihood that they will close?

If the AE answers, “I don’t know,” then the answer says a lot about why the AE is not making budget.

A basic pipeline report can be done in a spreadsheet. It might include the name of the account, the total amount pitched, the probability of closing, when a final answer is expected and other details.

The spreadsheet will show the total number of proposals out in the field. It also can total up the dollars that have been proposed. If the AE has 20 proposals in the field at $10,000 apiece, the total is $200,000. If 10 percent of that amount is likely to close within 30 days, the AE might bring in $20,000 for the month. If the AE’s budget is $20,000, then the AE has a shot at making budget.

But if the spreadsheet shows 30 proposals in the field at an average of $5,000 apiece, the total is $150,000. At a 10 percent probability of closing, the AE is likely to bring home $15,000 against that budget of $20,000. The report reveals that the AE either has to pitch more business soon or find a way to increase the total dollars of each pitch — or both.

A pipeline report is a simple but revealing tool that takes a matter of minutes to prepare each week with input from AEs. It is an essential tool for any manager of online salespeople.