Lead Velocity Rate (LVR)

LVR

Lead Velocity Rate (LVR) is the month-over-month percentage growth in qualified leads. It is a leading indicator of future revenue growth — unlike MRR which reflects deals already closed. A consistent positive LVR means the top of your sales funnel is growing, which will translate to revenue growth in future quarters assuming stable conversion rates.

formula.sh

LVR = ((Qualified Leads This Month − Qualified Leads Last Month) ÷ Qualified Leads Last Month) × 100

> Qualified Leads: leads that meet your ICP criteria and have been evaluated by sales or marketing
> Must use a consistent qualification definition month-over-month for the metric to be meaningful
> LVR > 0 consistently means the pipeline is growing; LVR trending negative is an early warning

example

example.sh

Last month you had 200 qualified leads. This month you have 226.

((226 − 200) ÷ 200) × 100

→ 13% LVR — qualified pipeline growing at 13% MoM

why it matters

LVR is one of the only genuinely leading indicators in SaaS. MRR growth tells you what happened in the past 30 days; LVR tells you what MRR growth is likely to look like in 60–90 days. For sales-led companies with a 60-day average sales cycle, the LVR in February predicts April–May revenue.

Jason Lemkin of SaaStr popularized LVR as "the only metric that matters" for predicting revenue growth because it is harder to manipulate than pipeline value and more predictive than lagging revenue metrics. Investors in later-stage companies use LVR alongside ARR growth to assess whether the growth engine is accelerating or decelerating.

common mistakes

✗Changing the definition of "qualified" month-over-month — this makes LVR meaningless as a trend metric

✗Tracking total leads instead of qualified leads — unqualified lead volume is a vanity metric

✗Not adjusting for seasonality — B2B lead flow often dips in summer and year-end; adjust or use YoY LVR

pro tips

✓Establish a rigorous, consistent qualification definition (BANT, MEDDIC, or equivalent) and apply it uniformly

✓Track LVR by channel to see which acquisition channels are growing the qualified pipeline fastest

✓If LVR is strong but MRR growth is lagging, investigate conversion rates and sales cycle — the pipeline is there but something is breaking downstream

the mrrsucks take

Your LVR tells you where your revenue will be in three months. If you are ignoring it, you are essentially flying blind with a 90-day delay before you notice the ground.

faq

What is a good LVR for a SaaS company?+

Any consistent positive LVR means your pipeline is growing. 10–20% MoM LVR is strong for growth-stage companies. Below 5% signals that the top of funnel is stagnating.

How does LVR differ from pipeline value?+

Pipeline value is a dollar-weighted metric that can be inflated by a few large deals. LVR counts the number of qualified leads, which is a more durable signal of market demand and top-of-funnel health.

The $0 MRR milestone›

related metrics

./install-the-daemon

$9. 365 roasts. one public endpoint of pure shame.