---
title: How to Turn HubSpot Lifecycle Stages Into a Revenue Model
description: Stop using HubSpot lifecycle stages to sort contacts. Work backward from revenue to how many leads, MQLs and SQLs you need, and find what moves each stage.
image: https://www.johnsteeleconsulting.com/hubfs/JSC%20Linkedin%20OpenGraph%20Image%202.png
---

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HubSpot Consulting

# How to Turn HubSpot Lifecycle Stages Into a Revenue Model

Lifecycle Stages are not for organization. They can be a powerful tool for optimizing your revenue operation.

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By   John Steele ·  6 minute read

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Key takeaways

- Most teams use lifecycle stages to label contacts. Defined tightly, they become a model of how many leads, MQLs and SQLs you need to hit a revenue goal.
- A measurable stage has an entry rule tied to data, requires both fit and intent, and has one department accountable for it.
- Work backward from revenue: divide by average deal size, then by each stage's conversion rate, using HubSpot's "Date entered" stage properties for your real rates.
- Trace closed-won deals to find the activities and messages that move contacts between stages, then run them at the volume the model calls for.

You would be forgiven for thinking that HubSpot Lifecycle Stages—the defined, default labels HubSpot recommends users apply to every contact—are an organizational tool. Who doesn't like keeping their contacts neat and tidy? And knowing where your list stands at any given time is useful for any marketing operation.

But when lifecycle stages are loosely defined, a few things start to happen—and none of them are good. 

First, organizations get complacent. You can stick to HubSpot's recommended setup (Subscriber for newsletter leads, Lead for anyone who's filled out a form, MQL for some simple mixture of early engagements). But what happens when automations become inaccurate? What happens when certain signals of intent become stale? Who's responsible for keeping up with it all? 

Who came up with these definitions of intent and qualification anyway? Can anyone even remember? 

But there is another way to use Lifecycle Stages. With this technique, you aren't guessing at what makes an SQL vs. an Opportunity. You're simply doing the math. 

In this model, each stage is set based on its likelihood to close a deal. And the activities that led your best-fit customers to purchase are used in a testing framework designed to drive people from one stage to the next, creating more efficient pathways to purchase.     

Getting there takes three things: stages defined tightly enough to measure, a model that works backward from revenue, and a record of what actually moves people. Here's how to build each one in HubSpot.

## What makes a stage measurable

### A rule tied to data

Each stage needs an entry rule based on discrete data points in the contact record, ideally ones your history shows actually predict movement.

### Fit plus intent

Keep stages separate from lead scores. A contact can have an off-the-charts fit score and still not belong in the next stage. Movement should come from two things together: a best-fit prospect, and a series of actions that signal intent.

### An owner

Each stage is a handoff. Moving someone from Lead to Marketing Qualified Lead means marketing believes it has done its job: the contact has been screened, and sales can reasonably be expected to make progress. If that screening doesn't hold up, sales takes the blame for a problem that belongs to marketing. Each stage should reflect a standard one department is accountable for.

A starting shape for a B2B team with a sales-assisted motion:

| Stage | Enters when | Set by | Accountable |
| --- | --- | --- | --- |
| Lead | Submitted a form or booked a call | Form or meeting | Marketing |
| MQL | Fits your best-fit profile and has taken an intent action, such as a demo request | Workflow | Marketing |
| SQL | A rep has talked to them and confirmed fit | The rep | Sales |
| Opportunity | A deal exists | Deal association settings | Sales |
| Customer | A deal closed won | Deal association settings | Sales |

Skip stages that don't fit your motion, on purpose. Plenty of founder-led sales teams go straight from Lead to Opportunity. Our [HubSpot lead scoring guide](https://www.johnsteeleconsulting.com/blog/hubspot-lead-scoring-b2b-saas) covers building the fit side of the MQL rule.

## Work backward from revenue

Once stages are measurable, the model is math. Start with your revenue goal and average deal size, then divide by the conversion rate at each stage. Your own rates come from HubSpot's ["Date entered \[stage\]" properties](https://knowledge.hubspot.com/records/use-lifecycle-stages) and the lifecycle stage funnel report.

![Lifecycle stage revenue model: a $600,000 goal and $20,000 average deal require 2,500 leads, 500 MQLs, 200 SQLs, 100 opportunities and 30 customers a year, with the owner, entry rule and value per contact for each stage](https://www.johnsteeleconsulting.com/hs-fs/hubfs/lifecycle-revenue-model-1-stage-model.webp?width=760&height=655&name=lifecycle-revenue-model-1-stage-model.webp)

Work backward from the revenue goal: each stage's count is the next stage's count divided by its conversion rate. Illustrative numbers.

An illustrative example, with a $600,000 annual goal and a $20,000 average deal:

| Stage | Converts to next stage | Needed per year | Needed per month | Value per contact |
| --- | --- | --- | --- | --- |
| Customer | – | 30 | 2.5 | $20,000 |
| Opportunity | 30% | 100 | ~8 | $6,000 |
| SQL | 50% | 200 | ~17 | $3,000 |
| MQL | 40% | 500 | ~42 | $1,200 |
| Lead | 20% | 2,500 | ~208 | $240 |

The last column puts a value on each stage: the deal size times the odds that a contact at that stage eventually closes. It shows why getting through marketing's stages shouldn't count the same as moving from SQL to Opportunity. In most funnels the early stages are easy to pass, and the value is concentrated near the close.

The model also tells you where a gain is worth the most. Raising MQL-to-SQL conversion from 40% to 50% cuts the leads you need from 2,500 to 2,000. That's 500 fewer leads to generate every year for the same revenue.

## Find what moves each stage

The model tells you how many contacts you need. The next step is knowing which activities produce them.

Start from closed-won and work backward. Pull your customers and trace the paths they took: the forms, meetings, product events, emails and replies that came before each stage change. The actions that show up again and again are your levers.

Then connect stages, lead scoring or both to the messages contacts receive, and keep a record of which messages moved someone from one stage to the next. Test them, and keep the ones that work. Over time you get a plan with numbers attached: to produce 42 MQLs a month, run the activities that have produced MQLs before, at the volume the conversion rates call for.

## Set it up in HubSpot

### Re-label every contact

Run your whole contact database through a workflow, or build a set of lists that mirror the entry rules, and set every contact to the stage it belongs in today. To move a record backward, HubSpot requires clearing the stage first and then setting the earlier one. HubSpot's "Date entered" and "Date exited" properties keep their values when you do, so your conversion history survives the cleanup. Only the legacy "Became a" dates are cleared. Note the cleanup date on your dashboards anyway.

### Automate the moves

Each entry rule becomes a trigger, so contacts move as soon as they hit a threshold. Forms assign Lead in their settings. A workflow sets MQL. Deal association handles Opportunity and Customer through the [lifecycle sync settings](https://knowledge.hubspot.com/crm-setup/manage-how-lifecycle-stages-sync-between-objects), which also control how company stages follow their contacts. The workflow action that sets a property value requires a Professional or Enterprise subscription, so on Starter you'll lean on form and association settings.

### Protect the data

HubSpot's automatic updates only move a stage forward, but a workflow can clear the stage and set an earlier one when your rules call for it. That flexibility cuts both ways. HubSpot has no native triggers for moving stages, so depending on how a workflow is built, a contact can be re-enrolled, reset to a default, or lose its stage entirely when it exits. Every workflow that touches lifecycle stage should clear and rewrite the value deliberately. Check re-enrollment and exit behavior before you turn anything on. A model is only as good as the dates feeding it.

### Give bad-fit contacts their own path

Track disqualified contacts in Lead Status, with values such as "Unqualified," "Bad timing" and "Nurture," so they stay out of the model. Then decide what makes them useful. A contact who will never buy your top tier may still use your free tier. Ask them for a review, or invite them to refer someone. A side automation for bad-fit contacts is a perfectly viable path.

## Run the model

### Look for the kink

A lifecycle funnel doesn't always get smaller at each stage. If your MQLs are everyone who completed the assessment required to open an account, your MQL count can easily be bigger than your Lead count. What usually happens is a kink at one level: a lot of contacts get stuck in one stage, and it takes a long time to move them on. That's the stage whose mobility needs work, and the model tells you what fixing it is worth.

![Bar chart comparing model conversion rates with actual rates: MQL to SQL runs at 18% against a 40% assumption while every other stage is within two points](https://www.johnsteeleconsulting.com/hs-fs/hubfs/lifecycle-revenue-model-2-find-the-kink.png?width=760&height=586&name=lifecycle-revenue-model-2-find-the-kink.png)

Comparing actual conversion rates to the model's assumptions shows where contacts pile up. Here it's the MQL-to-SQL handoff. Illustrative numbers.

### Flag deals going stale

Mature operations add a likelihood-to-close calculation and flag contacts moving away from a sale. The contact stays in SQL while the deal goes slightly stale, and the people responsible need to step in. (Stalled deals usually come down to buyer indecision, which we break down in our guide to [indecisive customers](https://www.johnsteeleconsulting.com/blog/the-indecisive-customer-scenario-a-marketing-strategy-for-b2b-sales).) Lead Status works well for this, or a custom calculated property built on [HubSpot's lead scoring tool](https://www.johnsteeleconsulting.com/blog/hubspot-lead-scoring-model-update). A lot of teams use lead score to qualify leads on the marketing side, then use it again to track likelihood to close on the sales side.

## Frequently asked questions

### What are the HubSpot lifecycle stages?

HubSpot has eight [default lifecycle stages](https://knowledge.hubspot.com/records/use-lifecycle-stages), in order: Subscriber, Lead, Marketing Qualified Lead, Sales Qualified Lead, Opportunity, Customer and Evangelist, plus Other for records that fit none of them. You can rename, add and reorder stages, but each one only becomes useful once your team has written down what it takes to enter it.

### How do I measure how long contacts spend in each stage?

HubSpot records "Date entered" and "Date exited" for every stage, plus "Latest time in" and "Cumulative time in" properties that track time spent in a stage. The time properties require a Professional or Enterprise subscription.

### How many MQLs do I need?

Divide your revenue goal by your average deal size to get the customers you need, then divide by the conversion rate at each stage, working back to MQL. With a $600,000 goal, a $20,000 average deal and the rates in the example above, that's 500 MQLs a year.

### Can HubSpot lifecycle stages move backward?

Not automatically. HubSpot's automatic updates only move a stage forward. A workflow or a manual edit can clear the stage and then set an earlier one, and HubSpot's "Date entered" and "Date exited" properties keep their history when you do.

### Should lifecycle stages be based on lead score?

Lead score can tell you a contact is a strong fit, but fit alone shouldn't move a stage. Stage changes should need both a best-fit prospect and an action that shows intent.

## Doing it yourself vs. getting help

Everything above can be done in-house. The hard part is the first step: the analysis of what has moved your customers, and getting sales and marketing to agree on definitions they've been interpreting differently for years. If you'd rather have someone outside the team run that work and build the model, it's part of our [HubSpot Consulting](https://www.johnsteeleconsulting.com/hubspot-consulting) work.

For more HubSpot and marketing ops breakdowns like this one, [subscribe to Funnel Vision](https://www.johnsteeleconsulting.com/newsletter). Full disclosure: it's my newsletter.

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HubSpot and marketing automation consultant for B2B startups and SMBs.

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