Leads

(prospects or potential customers)

 
  X  
  Conversion Rate

(the difference between those that could have bought and those that did)

 
  =  
  Customers

(the number of different customers we deal with)

 
  X  
  Number of Transactions

(the average number of times each customer buys from us in a year)

 
  X  
  Average Dollar Sale Price

(the average price of the items we sell)

 
  =  
  Total Turnover

(the total revenue of the business)

 
  X  
  Margins

(the percentage of each sale that is profit)

 
  =  
  PROFIT

(the goal of the effort)