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Understand What Predictable Revenue Is and How It Will Help Your Company

Understand What Predictable Revenue Is and How It Will Help Your Company

Selling more and better is the goal of every business. However, obtaining good results is not always easy. Imagine if your company didn’t have to worry about this, because it has predictable revenue.

This is the concept presented by the American author Aaron Ross in his book Predictable Revenue. In this article we’ll explain Aaron’s idea, and you’ll be able to put it into the context of your company’s reality. Let’s get started?

Realign the teams

The concept of predictable revenue is based on the idea that the role of the salesperson should just be selling.

This may appear redundant, but when we observe the reality of many companies, we perceive that the sales team also is overloaded with other functions, such as prospecting clients, or even administrative activities, for example.

The best analogy to explain predictable revenue is a relay race. In this competition one athlete passes the baton to another. If the baton falls, or in other words, if there’s a failure in the transfer of tasks, then everyone loses.

Marketing isn’t always able to pass the baton to sales, which is why a new athlete needs to enter the team, the SDR or Sales Development Representative.

Working with the SDR

The SDR team will be responsible for getting marketing information (a lead) and transforming it into a sales opportunity.

Instead of salespeople randomly calling all of their contacts, trying to convince them to buy, they just call those who have already demonstrated that they’re open to this conversation, thus avoiding so-called “cold calls.”

Besides saving the time of the salespeople and better using the time of these professionals, this strategy has a higher success rate. In order for it to work, care has to be taken in terms of a few strategic points. Let’s take a look:

Exclusive professionals

Aaron makes it clear that the professionals responsible for SDR should be exclusively devoted to this function.

Sales system

In order for this strategy to work, it’s very important to have metrics, which requires using management software.


The SDR team contacts the client through email. Aaron suggests that these emails should be “short and sweet.”

This contact should make it possible to discover who is the appropriate person in the company for the salesperson to talk to, or to schedule a direct meeting with this person if possible.

Tested product

The product to be sold should have already been tested by the company, guaranteeing that it generates sales and revenues.


The lifetime value (LTV) of the product should be greater than $10 thousand. The sales team begins to act when the person contacted shows interest in proceeding with a negotiation, when the person identified is influential within the firm, or when this person fits the predetermined client profile.

Avoid common errors in predictable revenue

Many businesses have been disappointed because they haven’t achieved good results with predictable revenue. Normally this occurs because they have committed errors such as:

Wanting immediate results

This strategy should be thought of as medium-term, which usually means a year.

Very long emails

Remember Aaron’s advice: “short and sweet.”

Contacting many people

Determine, based on criteria, which people should be contacted by the SDRs.

Giving up

Even if the response rate is low in the beginning, be persistent.

Insisting on the wrong profile

Taking a long time to perceive that the client’s profile isn’t ideal, or in other words, there was an error in defining it.

Measuring the wrong things

Finally, there can be failures in the choice of the metrics to be analyzed.

The concept of predictable revenue is very relevant and could be the solution to the sales problems that your company is facing, and can guarantee you better results.