Funnel math

Conversion rates multiply.

Every GTM model is a funnel: visitors → signups → activated → paid. Being able to run one in your head lets you pressure-test any plan or forecast on the spot.

The move

Start at the top and multiply by each stage’s rate, one at a time. Each stage’s rate applies to the people who made it through the *previous* stage, not to the original top.

Worked example

10,000 visitors, 3% sign up, 40% activate, 25% pay

  1. 10,000 × 3% = 300 signups
  2. 300 × 40% = 120 activated
  3. 120 × 25% = 30 customers
  • End-to-end rate = all the rates multiplied: 3% × 40% × 25% = 0.3%.
  • Doubling *any* stage doubles the output. Stages are equally powerful in relative terms.