Average deal size
Average deal size (or average contract value) is the mean revenue per closed deal, calculated by dividing total new sales by the number of deals won in a period. It's a foundational number that shapes your whole go-to-market: it sets how many deals you need to hit a revenue goal, how much you can afford to spend acquiring a customer, and how much sales effort each deal justifies.
For a founder, average deal size decides what kind of sales motion makes sense. Small deals demand a fast, low-touch process or self-serve, because you can't afford long human-led cycles on low revenue. Large deals justify discovery calls, multithreading and a longer cycle. Moving the number up, by selling to bigger accounts or packaging a higher tier, is often the fastest route to growth because it multiplies through every deal without adding lead volume. Track it alongside win rate and sales cycle, since pushing deal size up usually lengthens the cycle, and judge the net effect on revenue.