

Why Weighted Forecasts Can Be Misleading and The Need For Scenario Forecasts
By Adam Chickman Jul, 29 2025
Traditional forecasts — even “weighted” ones — only tell part of the story.
Most sales teams rely on a roll-up forecast where each opportunity is multiplied by its close probability. That gives you a single number: your weighted forecast.
But when real-world decisions hang in the balance — like hiring, budget approvals, or investor updates — one number isn’t enough.
You don’t just need to know what the weighted outcome might be.
You need to know:
How likely are we to hit this number?
That’s where Scenario Forecasting comes in.
The Problem With Weighted Forecasts
Let’s say your weighted forecast is $100K. On paper, that sounds solid.
But what if that number is based on one deal: a $1M opportunity with a 10% close probability?
Technically, that math checks out: $1M x 10% = $100K.
But what’s the likelihood you actually close $100K?
Just 10%.
Which means there’s a 90% chance you close nothing — and your hiring plan or marketing spend is built on sand.
That’s the flaw in weighted forecasting. It shows the average, not the likelihood of hitting a specific number.
What Scenario Forecasting Does Differently
Scenario Forecasting flips the question:
Instead of asking “What’s our weighted number?”
You ask:
“What’s the probability we close at least $X this quarter?”
You can input any revenue threshold — $100K, $800K, $2M — and the model will show you the likelihood of hitting it, based on:
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Real, deal-level probabilities
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Historical win rates by rep, stage, segment
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Deal velocity and risk signals
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Forecast category and activity health
This isn’t just “stage-weighted.” It’s signal-based forecasting that reflects how your team actually performs — down to the individual opportunity.
Why It Matters
Scenario Forecasting helps revenue and finance leaders:
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Make higher-confidence decisions around hiring, spend, and growth
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Avoid false confidence from oversized or long-shot deals that inflate the forecast
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See the full distribution of potential outcomes, not just one average
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Plan proactively around likely revenue floors and ceilings
It adds the nuance you need to think like a CFO, not just a CRO.
A Forecast You Can Plan Around
Most forecasts tell you what’s “expected.”
Scenario Forecasting shows you what’s likely — and how confident you should be in any number.
Instead of saying:
“We’re forecasted to hit $1.2M this quarter”
You can ask:
“What’s the likelihood we hit at least $1M?”
“How likely are we to close $800K or more?”
“What’s our worst-case floor with 90% confidence?”
And you get real answers — grounded in real data — not gut feel or rep optimism.
The Bottom Line
When decisions hinge on revenue — and they always do — you can’t afford to plan off a single weighted number.
Scenario Forecasting gives you visibility into how likely you are to hit any goal — so you can plan smarter, manage risk better, and stay ahead of surprises.
If your current forecast doesn’t let you pressure-test outcomes, it’s not complete.
Want to see what Scenario Forecasting looks like inside RevdUp?