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Originally Posted by REBroker
That is one perspective.
Another perspective is that "Prospecting" is the process of finding qualified prospects. This process would encompass all forms of lead generation and extend through the pre-qualification step.
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The use of the word "prospecting" in selling is probably somewhat metaphoric, having been derived from the mining term. It works as a metaphor, of course, because it describes a multistage process, just as your definition implies. Finding and testing.