CRM 'expected revenue' and subscription based services


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Many CRM applications include sales pipeline tracking and sales workflow. Generally, when a new opportunity is created, one has to somehow enter the 'expected revenue' for the deal. This is easy for product and one-off service sales, it is simply the total of all products and services for the deal.

The question I have concerns subscription based services. When selling something that has a monthly recurring revenue, what value should be entered as the 'expected revenue' for the opportunity? Is it the revenue for one month, one year, or something else?

Sales CRM

asked Jul 26 '12 at 01:37
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Tim Long
108 points
Top digital marketing agency for SEO, content marketing, and PR: Demand Roll

1 Answer


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Many CRM applications don't address subscription / recurring revenue models. Cohort analysis is a good metric to view - but a bit more than a simple "field" value.

If you need a rollup value, See Estimating lifetime value of subscription models Also - there is an updated post on Estimating LV of an ecommerce company.

Do these work for you?

answered Jul 26 '12 at 10:04
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Jim Galley
9,952 points
  • Those are interesting articles, but are useful more for retrospective analysis than for estimating the value of a sale before it has happened. As you say, CRM applications don't adequately address this model. I think what I may do is just make an easy assumption that each customer will subscribe for a year, and take that as the value of the sale. After all, its only a metric for filtering and prioritsation. The actual sales figures will come from the accounting system. – Tim Long 9 years ago

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