Managing Deals with Annual Value & Call-Offs

[AHemingway]

We are in the early stages of implementing HubSpot and are currently struggling to determine how best to structure deals in the pipeline.

Our business typically creates opportunities with an end-user that are of an annual value (e.g. $100K) but rarely would we get an order for the full value. For example, the $100K may be broken down into a small 1st order, followed by routine monthly orders, that then comprise the full $100K deal over 12 months.

The issue we have right now is that if we break the deals down into multiple smaller deals, we lose visibility of the larger deal at play. If we enter the full annual deal value and mark as close-won after receipt of 1st order we are seeing closed-won value for the full annual deal value rather than the first order, thus impacting forecasting.

As a business, we have an issue monitoring whether the annual value of a deal is realised in full after the 12 months or whether ultimately the full-year deal is more or less than originally stated when closed-won. When 1st orders are received, a rep would typically move onto the next deal and maybe lose focus on realising the full annual deal value.

Anybody else having/had similar issues?

[HFisher7 · Accepted solution]

@AHemingway - A few different ways you could approach this in your HubSpot portal. 

Based on the information you've given, and trying to keep it as simple and as out-of-the-box as possible, I'd suggest taking a look at Line items. 

You can add each of the orders as a line item using the 'Billing start date' to capture the date this revenue is expected to come in - which can then be used to built out your revenue report. Additionally, if it is a piece of recurring revenue your 'Billing frequency' property can be set as 'Monthly' to denote this. 

A custom calculation property can be created which sums up the value of the associated line items and a second custom calculation property created to subtract this value from the set Deal amount to see the outstanding amount of potential value within each Deal. 

Further, Quotes could be used to show you which of the line items associated to the Deal are linked to each order.