What is the average time to sell, and what does it tell you?

The sales cycle indicates how long it takes from when a deal is created until it is closed.

Use the median when there are large differences

If you have both short two-week contracts and large one-year contracts, the average will be skewed. The median better reflects a typical contract.

Calculate using won deals only

Lost deals are often closed either very quickly or never. If you include them, you’re measuring data hygiene rather than sales cycle length.

Increasing sales cycle length is an early warning sign

If deals are taking longer than before, something is happening: the price is meeting resistance, a competitor is involved, or qualification has become less rigorous. This shows up in the metric before it shows up in revenue.

Use it for planning

If you know that the average is ninety days, you also know when the pipeline needs to be filled to hit next quarter's target.