Read the equation
The equation scales lead value L by the closing probability P_c. For a nonnegative L and a probability between zero and one, the product ranges from zero when a close is impossible to L when a close is certain. A probability has no monetary unit, so ER retains the value unit used for L. The poster also defines L as a probability-weighted outcome sum. It does not specify whether those outcomes are conditional on closing, and that distinction matters when applying a separate closing probability.
Its role in the build
The MADDIE Equation — Client Conversion Formula
Terms & definitions
| Term | Meaning in this source |
|---|---|
| ER | Expected revenue as named by the poster. |
| L | Lead value, defined elsewhere on the poster by a sum of outcome values weighted by outcome probabilities. |
| P_c | Probability of closing, represented by a separate formula on the poster. |
| × | Ordinary multiplication of lead value by closing probability. |
How it works
Specify what the lead value L includes and whether it is conditional on a successful close.
Use the closing probability P_c for the same lead and outcome definition.
Multiply L by P_c, retaining the value unit of L.
Assumptions & limits
The source provides no measured lead values or closing probabilities with which to evaluate the expression.
The conditioning of the outcome probabilities inside L is unspecified; applying P_c again requires care if L already includes the chance of not closing.
Original context
Read the surrounding source passage
The MADDIE Equation — Client Conversion Formula: Multiplies lead value by closing probability.
Exact original notation
ER = L × P_c
Related builds
Sources & provenance
ER = L × P_c