Think of your sales pipeline as a funnel, with the widest end at the start and a spout at the end. Your fresh leads represent the wide end of the funnel and make up the most populated part of the pipeline. From there, each stage will lose a number of leads, either because the customer is no longer interested or because they aren’t a good fit for your product.
In this way, a healthy pipeline will always have more leads entering it that in any other stage, with each subsequent stage holding fewer prospects than the one before it until you close deals with the remaining prospects.
Of course, you still want to have a good amount of closed deals! A funnel-shaped pipeline is only one of the healthy signs, but it’s a good rule of thumb to begin with—provided you’re making enough revenue, then a funnel-shaped pipeline is a good indication of either stability or growth. - read more