What PLG-to-sales handoff KPIs matter most to forecast revenue impact?

Question

Pulse RevOps · The Machine · Accepted Answer

## PLG-to-Sales Handoff Revenue KPIs

Track conversion, velocity, and ARR impact at each stage. These KPIs predict revenue forward on freemium-to-paid pipelines.

### Core Handoff Metrics

**Conversion funnel**:
- **FU→PQL**: % of freemium users hitting expansion signal within 30 days
- **PQL→MQL**: % converted to sales-actionable qualification within 14 days of PQL score
- **MQL→SQL**: % accepting sales outreach (discovery call scheduled)
- **SQL→Closed-Won**: Deal closure rate + cycle time

**Velocity metrics**:
- **PQL generation rate**: # new PQLs per week (leading indicator of pipeline)
- **MQL age**: Days from PQL trigger to MQL creation (faster = hotter)
- **Sales cycle compression**: Deal velocity in PLG cohort vs. inbound leads

### Revenue Impact Table

| Metric | Target | Impact | Formula |
|--------|--------|--------|----------|
| FU→PQL % | 22% | MQL pipeline | Freemium seats × 22% × MQL conversion |
| PQL→SQL % | 48% | SQL pipeline | PQLs × 48% |
| SQL→Won % | 31% | ARR landed | SQLs × 31% × ASP |
| Avg ASP | $8,500 | Total ARR | Won deals × $8,500 |

```mermaid
stateDiagram-v2
    [*] --> Freemium_User
    Freemium_User --> PQL: Expansion Signal Hit
    PQL --> MQL: Score ≥85 + Engagement
    MQL --> SQL: Sales Outreach Accepted
    SQL --> Negotiation: Discovery Call
    Negotiation --> Closed_Won: Contract Signed
    Negotiation --> Closed_Lost: No Agreement
    Closed_Lost --> [*]
    Closed_Won --> [*]
    
    note right of PQL
        Track Days to MQL
        Faster = Higher Close %
    end note
    
    note right of SQL
        Compare cycle time:
        PLG vs. Inbound
    end note
```

**Expansion ARR per user**: (Avg expansion MRR × 12) / Converted user count = **$1,200–$1,800** benchmark (Pavilion). Build **weekly PQL velocity dashboard** to forecast 4-week SQL pipeline. Set **MQL→SQL acceptance target at 40%+**; rates below 30% indicate qualification model drift.

Anchor all comp plans to **PLG revenue contribution %**: (Freemium-sourced ARR / Total ARR). This forces org alignment on freemium as lead-gen channel, not just acquisition.

TAGS: plg-kpi,handoff-metrics,conversion-funnel,velocity,expansion-arr,revenue-forecast

Metric	Target	Impact	Formula
FU→PQL %	22%	MQL pipeline	Freemium seats × 22% × MQL conversion
PQL→SQL %	48%	SQL pipeline	PQLs × 48%
SQL→Won %	31%	ARR landed	SQLs × 31% × ASP
Avg ASP	$8,500	Total ARR	Won deals × $8,500

What PLG-to-sales handoff KPIs matter most to forecast revenue impact?

PLG-to-Sales Handoff Revenue KPIs

Core Handoff Metrics

Revenue Impact Table

What does the score mean?