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Sales manager’s glossary in plain words
The sales manager’s glossary has the 30 terms that every headofsales.me material is built on: six deal stages, words for how a team works, metrics and roles. The definitions match the free Sales Manager’s Map, so stages and numbers line up across kits. The whole glossary is open on this page.
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- English
- updated October 13, 2026
How it works
How the glossary is organized
Six deal stages
Group 1 of 4
Stages
- Lead, inquiry
- A person or company that showed interest: they wrote, called or left a request. For example, a website request at 11:40.
- Conversation
- You found out the customer’s need, budget and timeline. For example, after a call the record says: three rooms, a $9,000 budget, by November.
- Proposal
- The customer received a price and terms in writing. For example, an $8,500 estimate sent by email.
- Decision
- The customer answers “yes,” “no” or “I need time” and names a date. For example, “I’ll reply by the 20th.”
- Payment
- The customer agreed, and you need to send an invoice and name a due date. The deal counts as a sale under the rule you chose: when the money arrives or when the contract is signed. For example, an invoice on Monday, due Friday.
- After the sale
- A review, a repeat purchase, a referral. For example, a month later the customer brought a friend.
Group 2 of 4
System
- Deal
- One customer and one possible sale, from the first inquiry to payment or refusal. A customer who buys twice is two deals.
- Channel
- The way a customer reaches you: phone, messenger, email, website form. Of 40 inquiries, 25 came by phone and 15 from a messenger: two channels.
- Funnel (sales funnel)
- The path of deals through the stages from inquiry to payment. Of 48 inquiries, 27 reached a conversation, 14 a proposal, and 3 bought.
- Qualification
- A few short questions to find out whether the customer has a need, a budget and a timeline. Three questions in five minutes.
- Next step
- A specific action on a deal: what, who, by what date. For example, “Alex will send the estimate by Friday.”
- Decision date
- The date by which the customer promised to answer. It is recorded from the customer’s words, not from your expectations. For example, “by October 20.”
- Active deal
- A deal where the customer has confirmed interest and a next step with a due date is recorded. For example, the customer replied last week and the step is set for Friday.
- Leak
- The stage where the funnel loses the most customers. Of 14 proposals, 3 became sales: about four out of five did not.
- CRM
- A program or spreadsheet for customers, deals, conversations and tasks, so nothing gets lost. The letters stand for customer relationship management.
Group 3 of 4
Metrics
- Conversion
- The share of deals that moved from one stage to the next. Of 27 conversations, 14 reached a proposal: 14 ÷ 27 = 52%.
- Win rate
- Of the deals the customer has decided on, the share that ended in a sale; open deals are not counted. Of 11 decided deals, 3 were sales and 8 were lost: 3 ÷ 11 = 27%.
- Average deal size
- How much one sale brings on average: revenue for the period divided by the number of sales. Revenue $9,000 and 3 sales: an average deal size of $3,000.
- Sales cycle
- How many days pass from the deal appearing to the sale. A deal opened on October 3 and paid on October 24 has a cycle of 21 days.
- Cost per inquiry
- How much you spend on advertising to get one inquiry. Advertising $600 ÷ 40 inquiries from ads = $15.
- CAC
- Customer acquisition cost: how much it costs to win one new customer, counting advertising and the work of the sales department. A new customer is one who bought for the first time. ($600 + $1,800 + $100) ÷ 3 customers = about $833.
- Profit per deal
- How much is left of the deal amount after the direct costs of delivering it: materials, contractors, commissions. Revenue $9,000, direct costs $6,300 across three orders: $900 per deal.
- ROMI
- Return on advertising: how much profit advertising brought beyond the money put into it. Advertising $600, profit from deals $1,800: ($1,800 - $600) ÷ $600 = 200%.
- LTV
- Customer lifetime value: how much profit a customer brings over the whole time they work with you. Profit per deal $900, the customer bought 1.4 times: $1,260.
- Forecast
- An estimate of sales for a period with the assumptions named. Three versions are better: cautious, base and good. For example, $12,000, $19,000 and $26,000.
Group 4 of 4
Rhythm and roles
- Management rhythm
- Your regular actions with a fixed time and a written outcome. For example, a 10-minute morning check every day and a deal review on Mondays.
- Task
- An agreement: what, who, by when. For example, “Maria will send the list of lost deals by Wednesday.”
- Response standard
- The time within which you commit to reply to a customer in each channel. For example, in a messenger during working hours, within an hour.
- Sales manager
- The person who answers for the department’s result, not only for their own sales.
- Owner
- Sets the goals and resources and receives your report. For example, decides how much to spend on advertising and what discount is allowed.
Questions
Questions and answers
What is a sales funnel in plain words?
The path of deals through the stages from inquiry to payment: how many reached a conversation, a proposal, a payment. For example, of 48 inquiries, 27 reached a conversation, 14 a proposal, and 3 bought.
What is the difference between an inquiry (lead) and a deal?
An inquiry is a person who wrote, called or left a request: they want something from you. A deal is one customer and one possible sale, from the first inquiry to payment or refusal. A deal is active when the customer has confirmed interest and a next step with a due date is recorded.
Which deal stages do headofsales.me materials use?
Inquiry, Conversation, Proposal, Decision, Payment, After the sale. It is a reference scheme, not required names: your CRM may have more stages or fewer.
How do I calculate conversion?
As the share of deals that moved from one stage to the next. Of 27 conversations, 14 reached a proposal: 14 ÷ 27 = 52%.
How is average deal size different from profit per deal?
Average deal size is revenue for the period divided by the number of sales. Profit per deal is what is left of the deal amount after the direct costs of delivering it: materials, contractors, commissions.
What does a sales manager do?
A sales manager is responsible for the team’s result through the work of the team, not through their own sales.
Author
Who made this
Author: Natalia Kotovich. About the author: nataliakotovich.com.
Updated .
Where they are used
Where these terms are used
Free: the first 30 days checklist, the Sales Audit, the guides “How to run a sales meeting” and “Sales funnel stages”.
The same 30 terms, with a self-assessment and a first-month plan, are in the free Sales Manager’s Map.
Get the map