Important Sales Acronym Glossary

Hey folks, I keep hearing from newbie sales professionals that they get stunned hearing some new sales jargon every day and are sometimes left blank when they get asked about those from their bosses.

So, Here is the compilation of some Important Sales Acronyms that came to my mind instantly.

What is an Invoice and how to prepare one?

If you are a seller, you might often come across the term “Invoice”. If you are still unaware of it or have an iota of doubt on this topic, read on to know more.

What is an Invoice?

  • An Invoice is a document that is given by the seller to the buyer, as a legal and formal way of requesting for payment in lieu of the products and/or services rendered to the Buyer. 
  • It primarily contains the list of items being sold along with the price of each item. 
  • This document acts as a formal and legally binding way of asking for payment and can hold good in case of any dispute on any payment dues or terms of service since it acts as a proof that the customer was notified on the request for payment. 
  • Having said that, the more important purpose of using Invoice is for tracking the payments made for the goods and services sold.


What should be present in an Invoice?

For a document to be qualified as a formal Invoice, It should contain the following basic details:

  • The Name “Invoice” is on top of the document.
  • A Unique reference number, also known as the Invoice Number. It should be unique so that you can track it properly in your CRM or ERP.
  • Date the invoice was generated or sent to the customer.
  • Date of sales or the time period in which the service was provided to the customer.
  • Name and Contact information of the Buyer
  • Name and Contact information of the Seller.
  • Line-wise listing of product items or services sold to the customer.
  • Per unit cost of each line item being sold to the customer.
  • It should mention any applicable discount on each line item or can be present at the end.
  • It should mention the applicable Tax on the sales of goods or services as per the applicable local laws governing the business.
  • And finally, it should mention the Total Amount to be paid by the Buyer.
  • Additionally, you may want to include your company logo on it (the Seller Company’s logo) to make it look more appealing, it helps in your branding as well.

Check out the sample Invoice document:

Invoice Sample

What is the difference between Sales Invoice and Purchase Invoice?

Sales Invoice: From the Perspective of the Seller, the invoice listing the products and/or services being sold is called a Sales Invoice.

Purchase Invoice: From the Perspective of the Buyer, the invoice listing the products and/or services which he purchased is called Purchase Invoice from his reference.


How can you send invoices to your Customers?

If you are a Seller, you might be required to send the Invoice to your customers. If the number of invoices you send usually is less and can be managed manually, then you can manually type it in a Word document in a pre-defined template and send it to your customer.

However, if you are in a growth stage and want to scale up, you should definitely use a CRM, ERP, or Accounting software that can help you with an auto-generated invoice, so that it would be easier for you to organize loads of invoices, track the payments better and reduce any manual errors.


How to generate an Invoice instantly online?

If you want to generate an Invoice online instantly. You may check out our free tool for generating invoices instantly. You can generate invoices without the need to log in.

Tool: Online Invoice Generator


I hope you found this article useful. Let us know with your comments.

Are you looking for a good CRM? Try out ToolsonCloud Sales CRM, It's Free,
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What is Churn Rate?
If you run a subscription based business where you gain monthly or periodically recurring revenue, Churn Rate is one of the important parameters to consider for forecasting your future revenues. This metric is not just a KPI for Sales & Marketing department but also directly impacts Finance department for their future financial forecasts as well as impacts Operations or Delivery department in order to plan for scaling up or scaling down of existing business operations or infrastructure.

What exactly is Churn rate then?

In Simple terms, as the name suggests, Churn rate signifies the rate at which you lose your recurring revenue. Churn Rate can be estimated either on revenue or on the user headcount numbers depending on the way your business operates. In the Software subscription (SaaS) Industry, Churn Rate is usually calculated on user base.

Hence if you have 100 users at the start of the month and you lost 5 users by the end of the month. It would mean your churn rate is 5%.

However, I would also suggest you should keep a tab on Churn rate based on Revenue. This is because subscription rates of different types of users may differ based on the complexity of your business model and hence the user based Churn rate calculation may not give you an accurate view.

Churn Rate based on Revenue can be calculated similarly. If your Monthly Recurring Revenue (MRR) was 100,000 USD at the beginning of the month and by the end of the month you lost some 5 users who contributed 20,000 USD to your MRR. Then your Churn Rate would be 20%.

Why is it Important?

Churn Rate directly impacts your revenue and financials and is also an indicator of how dissatisfied are your customers. If you observe a series of increasing Churn Rate month over month, then it should definitely raise a flag and you need to accept that there is something definitely wrong which is leading to a spike in number of users opting out of your subscription or rental service.

Also, in order to stay in the game, your business should sustain for long.

What would happen if you fill a bucket with 1 mug of water every second but the bucket has a hole which keeps leaking 1.1 mug of water every second?


Leaking bucket of Water

You would never reach your goal of filling your bucket completely. Similarly, for your business to stay sustainable, its Customer Acquisition Rate should more than the Churn Rate. Otherwise you know what would happen.

Hope you liked reading this post. In the next post, I shall bring to you some tips to reduce your Churn Rate. Stay tuned and do subscribe us our Social Media Channels.

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I tend to read a lot of books on Sales Methodologies. Now that I have read a numerous materials on Sales, I felt let me share a list of Costly Sales Mistakes or Situations which every sales professional should try to avoid in a Sales Process.

As per my experiences, the following 15 types of sales mistakes should be avoided at any cost:
Why newbies should focus on Vertical Selling instead of Horizontal Selling
Are you a Newbie just delving into your Sales Career?
or
Are you a Sales Manager looking for assigning a territory to a newbie in your team?

or
Are you a Newbie startup looking to start with Selling your Product or Solution?


If answer to any of these questions is "Yes", 
Then you should focus on Vertical Selling instead of Horizontal Selling!


Surprised? In this post, I would tell you why is that so!