Deal Stages are industry established sales pipeline all your transactions. Deals go from Prospect > Opportunity > Active > Under Contract > Closed (Won or Lost).
Each stage has a different change of actually winning the deal, the further advanced you are in the pipeline, the higher your changes of actually closing (winning) your deal, and collecting a commission.
Here's the breakdown for each deal stage:
- Prospect (10% chance of win): A deal in "Prospect" stage is one that is not yet qualified (i.e. someone 'says' they want to buy, but may not know they can't)
- Opportunity (20% chance of win): an "Opportunity" is a deal already qualified but not yet actively searching
- Active (40% chance of win): an "Active" deal is in the middle of the action (searching for homes, or finding buyers for listings, etc.)
- Under Contract (80% chance of win): "Under Contract" doesn't need much explanation.
- Closed Won / Closed Lost (100% or 0% chance of win): when the deal is completed either because you won (and are waiting for your commission) or because you lost the deal for any reason