# The Rule of 78 in VoIP Sales

One of the keys to understanding recurring revenues in VoIP Sales is the Rule of 78. This is a simple concept, so let’s not complicate it. It goes like this:

1. You make a new sale in January of \$1000. That will recur for all 12 months in the year, bringing you \$12,000 in revenue.
2. In February, you close another deal for \$1000. That will recur for the remaining 11 months of the year, bringing you \$11.000 in revenue.
3. For that same \$1000 sale, March yields \$10,000, April \$9000, all the way to December with \$1000.
4. So, if you add that up, you get \$12,000 + \$11,000 + …. + \$1,000, which equals \$78,000.
5. Using numbers rather than dollars, it’s 12 + 11 + 10 + 9 + 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 = 78
6. For you math smarties, it can also be done as (12 + 1) x 6 = 78
7. So, if you calculate your average revenue per user and your average users per account, you’ll get the average revenue per account. Multiply that by 78, and that’s your projected sales revenue

â€‹Got it? This is also why Sales in the first quarter are so important. They really set up the rest of the year.

## One thought on “The Rule of 78 in VoIP Sales”

1. #### End-of-year Ideas to Boost VoIP/UCaaS Sales - Pitch, A VoIP Consultancy October 26, 2017

[…] remember the good old Rule of 78, which means the stronger you start off 2018 in January, the better your year is likely to be […]