Definition:
Pipeline Velocity measures how quickly leads move through the sales pipeline and generate revenue.

Formula:
Pipeline Velocity = (Number of Opportunities × Average Deal Value × Win Rate) / Sales Cycle Length

Explanation:
It shows how efficiently a business converts opportunities into revenue. Faster velocity means stronger alignment between marketing, sales, and positioning.

Example:
If your pipeline generates $500,000 monthly with a shorter sales cycle, your velocity is high — indicating strong demand and effective conversion systems.