Average Deal Size measures the typical revenue a business earns from each completed sale within a specific period. It provides insight into the scale of transactions a company is handling and can be used to evaluate whether the business is focusing on smaller, quick wins or larger, high-value deals. This metric is particularly valuable for comparing sales performance over time, assessing market positioning, and shaping revenue growth strategies.
Average Deal Size = Total Revenue ÷ Number of Closed Deals
Average Deal Size varies greatly depending on the business model, industry, and customer segment. In the SaaS sector, deals may range from $5,000 to $50,000 on average, with smaller values often linked to SMB-focused products and higher amounts associated with enterprise-level contracts.
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Larger deals may require longer sales cycles and higher resource investment, which can impact efficiency and profitability.
Upselling, cross-selling, offering bundled services, and targeting higher-value customer segments can increase deal value without necessarily increasing sales volume.
Yes. Seasonality, market conditions, promotional offers, and product changes can all cause variations in the metric.