Average Deal Size

Average deal size is one of the four inputs to the deal velocity formula and a critical variable in revenue planning. A small shift in average deal size — from $10,000 to $12,000 per deal — represents a 20% increase in revenue without needing to close a single additional deal. Conversely, if average deal size is declining over time, it can signal that the sales team is drifting toward smaller accounts, making pricing concessions under pressure, or selling a reduced scope to accelerate closings. There are several established strategies for increasing average deal size. Selling to larger accounts (moving upmarket) is the most direct approach, though it typically requires adjusting the sales motion, hiring more experienced reps, and extending the sales cycle. Multi-product or module selling — expanding the scope of each deal to include additional products, seats, or service tiers — can increase deal size without changing the target customer profile. Better discovery practices that surface the full scope of a customer's problem early in the cycle lead to proposals that accurately reflect the full value of the solution. For outbound teams, average deal size is heavily influenced by who they target. Teams using Outvid who configure their AI video campaigns to target VP and C-level contacts at companies with 100+ employees consistently generate larger initial deals than those targeting manager-level contacts at SMBs, simply because the budget and scope of the problem are larger. Aligning outreach targets with deal size aspirations is one of the most overlooked levers for improving average deal value.