Sales Glossary
Every term a closer, setter, or sales professional needs to know — in plain language.
A
ACV
Annual Contract Value. The total revenue a contract generates in a single year, used heavily in SaaS and enterprise sales to measure deal size.
AE
Account Executive. A salesperson responsible for closing deals, typically after a lead has been qualified by an SDR or BDR.
ARR
Annual Recurring Revenue. Total predictable revenue from subscriptions, normalized to a one-year period. A core SaaS metric.
B
Base + Commission
A compensation structure combining a fixed salary with variable commission earnings. Common in traditional sales roles, less so in closer marketplace models.
BDR
Business Development Representative. Responsible for outbound prospecting and lead generation, typically passing qualified leads to AEs.
Booking
A confirmed sale or commitment, often used in appointment setting to mean a scheduled call or meeting.
C
Churn Rate
The percentage of customers who cancel or stop paying during a given period. Lower churn = healthier recurring revenue.
Closer
A sales professional who specializes in the final stages of the sales process — handling objections, negotiating terms, and securing the commitment.
Close Rate
The percentage of qualified leads or opportunities that convert into paying customers. A key performance metric for closers.
Cold Calling
Reaching out to prospects who have had no prior contact with the company. One of the oldest outbound sales techniques.
Commission
Variable compensation paid to a salesperson based on the revenue they generate. Can be a percentage of sale value or a flat fee per deal.
Commission-Only
A compensation model where the salesperson earns exclusively through commissions with no base salary. Common in closer marketplaces.
CRM
Customer Relationship Management. Software for managing interactions with current and potential customers (e.g., Salesforce, HubSpot).
D
Deal Size
The total monetary value of a sales opportunity or closed deal. Often expressed as ACV for recurring revenue businesses.
Discovery Call
An initial conversation with a prospect to understand their needs, challenges, and buying timeline. The first step in most consultative sales processes.
DM (Direct Message)
Reaching out to prospects or companies through private messaging on social platforms. Common on LinkedIn for sales outreach.
Draw
A recoverable advance on commission earnings, essentially a loan against future commissions. Common in traditional sales compensation.
E
Enterprise Sale
A high-value, complex sale involving multiple stakeholders, long sales cycles (3-12+ months), and significant contract values ($100K+).
F
Follow-Up
Contacting a prospect after an initial interaction to continue the sales process. Persistent, structured follow-up is critical for closing.
G
Gatekeeper
A person (often an assistant or receptionist) who controls access to a decision-maker. Navigating gatekeepers is a core sales skill.
H
High-Ticket
Products or services priced at $1,000+ (often $5,000-$50,000+). High-ticket sales typically require consultative selling and phone/video calls.
I
Inbound Lead
A prospect who initiates contact with the company, typically through a form, demo request, or content download.
ICP
Ideal Customer Profile. A detailed description of the type of company or individual most likely to buy and benefit from a product or service.
K
KPI
Key Performance Indicator. Measurable values that demonstrate how effectively a salesperson is achieving key business objectives.
L
Lead
A potential customer who has shown some interest in a product or service, or fits the target profile.
Lead Qualification
The process of determining whether a lead has the budget, authority, need, and timeline (BANT) to become a customer.
M
MQL
Marketing Qualified Lead. A lead deemed more likely to become a customer based on marketing engagement (downloads, visits, etc.).
MRR
Monthly Recurring Revenue. The predictable revenue a subscription business expects each month.
O
Objection Handling
The process of addressing a prospect's concerns or hesitations during the sales process. A critical skill for closers.
Onboarding
The process of getting a new customer (or new closer) set up and productive on a platform or with a product.
OTE
On-Target Earnings. The total expected compensation (base + commission) when a salesperson hits 100% of their quota.
Outbound
Sales activities initiated by the seller — cold calls, cold emails, social selling — as opposed to inbound inquiries.
P
Pipeline
The set of all active sales opportunities at various stages. Pipeline value and velocity are key sales metrics.
Pitch
A persuasive presentation of a product or service to a prospect, designed to communicate value and move toward a close.
Prospect
A potential buyer who has been identified as fitting the ICP but has not yet engaged in the sales process.
Q
Quota
A sales target assigned to a rep, typically expressed as a revenue or deal count goal over a specific period.
R
Ramp Time
The period it takes a new salesperson to become fully productive. Typically 3-6 months for traditional hires; much shorter for experienced closers.
Retainer
A recurring fee paid for ongoing services. Common in agency sales where closers sell monthly retainer engagements.
Revenue Operations (RevOps)
The alignment of sales, marketing, and customer success operations to drive revenue growth and efficiency.
S
SaaS
Software as a Service. A software delivery model where applications are hosted in the cloud and accessed via subscription.
Sales Cycle
The complete process from first contact with a prospect to closing the deal. Can range from days (transactional) to months (enterprise).
SDR
Sales Development Representative. A role focused on outbound prospecting and qualifying leads before passing them to an AE or closer.
Setter
An appointment setter. A sales professional who qualifies leads and books meetings for closers. Often compensated per appointment or with a hybrid model.
Show Rate
The percentage of booked appointments where the prospect actually shows up. A key metric for setters and inbound teams.
Social Selling
Using social media platforms (primarily LinkedIn) to find prospects, build relationships, and ultimately drive sales.
Solution Selling
A sales methodology focused on understanding the customer's pain points and positioning the product as the solution, rather than leading with features.
SQL
Sales Qualified Lead. A lead that has been vetted by the sales team and deemed ready for direct sales engagement.
T
Tele-Sales
Conducting sales entirely over the phone, without in-person meetings. Common for high-ticket info-product and coaching sales.
Territory
A defined geographic area, industry vertical, or account list assigned to a specific salesperson.
Trial Period
A defined evaluation period at the start of a sales engagement where both parties assess fit before committing long-term.
U
Upsell
Selling a more expensive version or add-on to an existing customer. A key revenue growth strategy.
V
Value Proposition
A clear statement of the tangible results a customer gets from using a product or service. The foundation of effective sales messaging.
Vertical
A specific industry or market segment (e.g., SaaS, coaching, real estate). Vertical specialization improves sales effectiveness.
VSL
Video Sales Letter. A pre-recorded video designed to sell a product, commonly used in info-product and coaching funnels.
W
Warm Lead
A prospect who has shown interest or had prior contact, making them more receptive to a sales conversation than a cold lead.
Win Rate
The percentage of opportunities that result in a closed deal. Similar to close rate but often measured at the opportunity stage level.
Ready to put these terms into practice?
Join LemClosers and start closing deals.