A lead in sales and marketing is a person (or company) who has shown some level of interest in your product or service and whose contact information you have captured. In B2B, the term "lead" is used broadly -- it can mean a cold contact that a salesperson identified and added to their outreach list, a person who filled in a form on your website, a business card collected at a conference, or someone who responded to an outbound email. Not all leads are equal. Lead quality varies enormously based on how the lead was acquired and what they did to express their interest.
Types of leads in B2B
IQL -- Information Qualified Lead
An IQL (Information Qualified Lead) is a lead at the earliest stage of the funnel: they have provided their contact information in exchange for a resource (a white paper, report, checklist, or guide) but have not yet demonstrated specific interest in your product. IQLs need nurturing -- they are interested in the problem space but are not yet in a buying cycle. The job of marketing is to nurture IQLs with relevant content until they become more engaged and signal buying intent.
MQL -- Marketing Qualified Lead
An MQL (Marketing Qualified Lead) is a lead that marketing has evaluated and determined is worth handing off to sales. MQL criteria combine fit (the lead matches the ICP -- right company size, industry, job title) and intent (the lead has taken actions that signal buying interest -- visited the pricing page, attended a webinar, reached a lead score threshold). MQLs are handed off from marketing to sales/SDR for follow-up.
SQL -- Sales Qualified Lead
An SQL (Sales Qualified Lead) is a lead that a salesperson has directly spoken with, confirmed has a real and active need for the product, has or can access budget, has decision-making authority, and has a defined timeline. SQLs are the most valuable type of lead and the direct input into the sales pipeline as active opportunities. Converting an SQL to a closed-won deal is the final step of the sales funnel.
Outbound vs inbound leads
Inbound leads come to you: a prospect finds your content, fills in a form, or requests a demo without any prior outbound effort from your sales or marketing team. Inbound leads are typically warmer (they found you, which signals intent) and convert at higher rates. Outbound leads are identified and contacted proactively by your sales team: the prospect had not heard of you before the first touchpoint. Outbound leads are colder at the initial contact but can cover the entire ICP universe, not just the subset that finds you organically.
Lead vs prospect vs opportunity
These three terms are often used interchangeably but have distinct meanings in most B2B sales processes: Lead: a contact who has shown some initial interest or been identified as potentially relevant -- not yet qualified. Prospect: a lead who has been reviewed and appears to match the ICP -- more specific than a raw lead but not yet confirmed as having active interest. Opportunity: a qualified prospect who has been spoken with, confirmed as in-market, and moved into the active sales pipeline with a defined next step toward close.
Frequently asked questions
- What is a lead in sales?
- A lead in sales is a person or company who has shown some level of interest in your product or service and whose contact information you have. In B2B, a lead can be: an inbound lead (someone who filled in a form on your website, downloaded a resource, or requested a demo), or an outbound lead (a person identified by a sales rep as a potential customer and contacted proactively). The term "lead" covers a wide range of engagement levels -- from a cold contact with no prior interaction to a warm prospect actively evaluating your product. Lead quality is assessed through qualification against ICP criteria and observed buying signals.
- What is the difference between a lead, prospect, and opportunity?
- Lead: any contact who has shown initial interest or been identified as potentially relevant -- the broadest, earliest-stage category. Not yet qualified. Prospect: a lead who has been reviewed, appears to match the ICP (right company size, industry, role), and is being actively worked by a salesperson. More specific than a raw lead but not yet confirmed to be in an active buying cycle. Opportunity: a qualified prospect who has been spoken with by a salesperson, confirmed to have an active need, budget, authority, and timeline (qualified by BANT or MEDDIC criteria), and has been moved into the active sales pipeline as a tracked deal.
- What is an MQL vs SQL in B2B?
- MQL (Marketing Qualified Lead): a lead that marketing has evaluated and determined is worth handing off to sales, based on fit (matches the ICP -- right company size, industry, job title) and intent (has taken actions that signal buying interest -- pricing page visit, webinar attendance, lead score threshold). MQLs are handed to the sales/SDR team for follow-up. SQL (Sales Qualified Lead): a lead that a salesperson has spoken with and confirmed has a real need, budget, decision-making authority, and a defined timeline. SQLs enter the sales pipeline as active opportunities.
- How are leads generated in B2B?
- B2B leads are generated through: (1) inbound channels -- SEO and content marketing (prospects find your blog posts via search), paid ads (Google Ads, LinkedIn Ads, with gated content offers), social media (LinkedIn organic content driving form completions), and events/webinars; (2) outbound channels -- cold email sequences, LinkedIn outreach, cold calling, and direct mail targeting prospects who match the ICP; (3) referrals -- existing customers or partners referring new prospects; (4) partnerships -- co-marketing with complementary companies to reach each other's audiences. Inbound leads are generally warmer and convert at higher rates; outbound provides control over which companies you pursue.
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