Close Rate > Lead Volume (The Math Nobody Does)

When revenue stalls, most business owners say:

"We need more leads."

So they increase ad spend. Try new channels. Chase more eyeballs.

Revenue stays flat.

Here's why: they're solving the wrong problem.

100 leads/month. 20% close rate. $10K average deal.

That's $200K revenue.

Want $400K?

Path A: Double leads to 200/month.

Path B: Double close rate to 40%.

Same result.

Except Path B costs you nothing in additional ad spend.

Path A: Double Leads

Path B: Double Close Rate

Same outcome.

One path costs $120K/year more.

Lead volume is visible. Leads coming in feels like progress. Close rate is buried in a spreadsheet.

Lead gen is someone else's problem. "Marketing gets leads. Sales closes them." Nobody owns the full journey.

Low close rates feel normal. If you've always closed at 15-20%, you assume that's how it is.

It's not.

60%+ is achievable.

After dozens of clients, here's what separates 20% from 60%+:

1. Speed to contact - First responder wins. Slow = doesn't matter how good you are.

2. Number of follow-ups - 80% of sales after contact #5. Most stop at #2.

3. Qualification accuracy - Talking to people who can buy? Or wasting time on tire-kickers?

4. Process consistency - Same process every time? Or depends on rep's mood?

5. Objection handling - Top closers aren't pushier. They're more prepared.

Property client. 23% close rate. Decent leads. Good team.

Revenue stuck.

We changed four things:

1. Sub-60-second response - AI contacts every lead immediately. Books automatically.

2. 12-touch follow-up sequence - Automated across SMS, email, phone. No lead falls through.

3. Pipeline visibility - Visual board. Everyone sees where every deal stands.

4. Weekly conversion review - Every Friday: where did we lose deals, and why?

Results after 6 months:

The leads weren't the problem.

The system was.

When close rates are low, the easy excuse is: "The leads are bad."

Sometimes true. Usually not.

"Bad leads" is often code for:

Before blaming lead quality, audit your process:

Fix those first. Then evaluate lead quality.

Cost per deal. Not cost per lead.

$50/lead with 20% close rate = $250/deal.

Improve to 40% close rate = $125/deal.

Same ad spend. Half the cost per customer.

This is why close rate optimisation is the highest-ROI activity in most businesses.

It doesn't cost more. It makes everything else work better.

Before spending another dollar on lead gen:

"What would happen if we closed twice as many of the leads we already get?"

If the answer is "revenue would double," you don't have a lead problem.

You have a conversion problem.

Conversion problems are cheaper to fix.