The floor you defend versus the fuller range
Committed revenue is what a team will stake its credibility on closing this period; projected revenue is the broader expected outcome including less certain deals. The two answer different questions. Committed is a floor, the number leadership can plan cash and board commitments around because it is backed by evidence. Projected is a range, the fuller picture that includes upside the team is not yet willing to promise. Confusing them, treating a projection as a commitment or a commitment as the ceiling, distorts every decision built on the forecast.Different numbers, different jobs
| Committed revenue | Projected revenue | |
|---|---|---|
| Confidence | High, evidence-backed | Expected, includes uncertainty |
| Role | Defensible floor | Fuller range and upside |
| Used for | Cash and commitments | Planning the range of outcomes |
| Risk if misused | Padded, loses meaning | Mistaken for certainty |
Discipline is what protects the floor
Committed revenue only works as a floor if commit means something. A committed deal needs evidence: an engaged economic buyer, a confirmed path to signature, a date grounded in the buyer's process. The moment reps commit on hope instead of proof, the committed number inflates and stops being a floor anyone can trust, which drags down forecast accuracy across the board. The same rigor that separates commit from best case is what keeps committed and projected distinct and useful. Hold the line on what qualifies as committed, and the two numbers together give leadership both a floor to stand on and a range to plan against.
Frequently Asked Questions
What is the difference between committed and projected revenue?
Committed revenue is the amount a rep or team is confident enough to stake their credibility on for the period, backed by evidence like an engaged economic buyer and a real close plan. Projected revenue is the broader expected outcome that includes less certain deals. Committed is a defensible floor; projected is the fuller, less certain range.
Why track both numbers?
Because they serve different decisions. Committed revenue is what leadership can plan cash and commitments around with confidence. Projected revenue shows the upside and the range of outcomes. Reporting only one loses information: committed alone hides the upside, projected alone overstates certainty. Together they frame the forecast honestly.
How do you keep committed revenue credible?
By defining commit strictly and enforcing it: a committed deal needs evidence, an engaged economic buyer, a confirmed path to signature, a realistic date. When reps commit on optimism instead of evidence, the committed number loses meaning and the whole forecast degrades. Discipline on what qualifies as committed is what keeps the floor a floor.
Put these metrics to work
ORM builds custom revenue forecast models that turn concepts like committed vs projected revenue into prescriptive action for your team.
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