The rule of 78 is one of the quicker, more straightforward ways to put together a solid estimate of your annual revenue. Here, we’ll take a closer look at the rule, what it entails, how to use it, and how it can be leveraged to assist with calculating reasonable sales quotas.
Let’s jump in.
The Rule of 78
Applying the rule of 78 is pretty straightforward. You simply multiply the amount of new revenue you plan to bring in each month by 78, and viola — you have the total revenue earned in a 12-month time span. Of course,
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