What is a sales pipeline?

A sales pipeline is a visual representation of where prospects are in your sales process. Each stage represents a step from initial contact to closed deal. Stages map to specific actions, not vague feelings about deal readiness. Typical B2B pipeline stages: 1) Lead (form submission, inbound inquiry). 2) Qualified (fits ICP criteria, has budget authority). 3) Discovery (first call completed, needs understood). 4) Proposal (proposal sent, pricing discussed). 5) Negotiation (terms being finalized). 6) Closed Won / Closed Lost. Each stage should have: clear entry criteria (what must be true to enter this stage), exit criteria (what must happen to move forward), and a typical duration (how long deals stay at this stage). Pipeline metrics: total pipeline value (sum of all deal values), velocity (average time from lead to close), conversion rate per stage (what percentage moves to next stage), and average deal size. Monitor weekly. Pipeline health rules: 3× your revenue target in total pipeline value, no deals stalled for more than 2× the average stage duration, and balanced distribution across stages (not all deals in early stages). If 80% of your pipeline is in Discovery and 5% is in Proposal, you have a conversion problem between those stages.