What are sales leads?

-realtor

The best way to put it: Somebody that has expressed interest, has not been closed, with all of the necessary information for contact to proceed with the next step in the sales process. -FollowUpMaster

Good question. I have a hunch you're going to get a variety of replies because I don't think there is a universally accepted definition of "sales lead". -SpeedRacer

Some generally accepted defintions:
1. "Prospects" are accounts which have expressed an interest in your offering, are capable of making the decision (timing) and have the budget to move forward (generally there is a time line associated such as "60 day prospect"); and,
2. "Suspects" are less defined but fit the mold of a potential client (for example, some companies define anyone outside of a 60-day window a suspect); and,
3. "Leads" are typically generated by marketing campaigns (either internal or external) and, until qualified, they have little value ... they are time sensitive and must be qualified ASAP.

At various points in my career, I've devoted portions of my marketing budget to the generation of leads by 3rd party companies. We would work through a script for them, commit to contract terms, and go for it. They would call a "qualified list" of customers which they've nurtured and would go thru the script with each of them. Any leads would be forwarded to the appropriate SM who would assign each to the proper SR. Then, the SR would have 'X' days to follow-up. It works for some but I've never experienced any success with this approach!

I hope this helps.

Good luck & Good selling!
Pat -OUTSource Sales

Here's how I see this...

The quality of sales leads vary and can be graded on a scale ranging from low to high based on the sales lead’s match to qualifying criteria with the highest grade of sales lead being a qualified lead (aka Prospect).

The qualifying criteria for a "Prospect" can vary from company to company but generally if a sales lead has expressed a want/need for the product or service being offered, the authority to make the purchase decision, the financial ability to complete the sale and a purchase timeline that falls within predetermined limits set by the company the sales lead is considered Qualified. -AZBroker

Thank you everyone. :thup

AZ what about suspects and how do you grade the leads? -realtor

The sales leads can be graded (sorted) according to a company’s agreed upon qualifying criteria. Such criteria might include:

• Reachable.
• Meets minimum requirements to purchase. (Ex; +$1M Gross Annual Revenues)
• Authority to make the purchase decision.
• Financial ability to complete the sale.
• Want/need for the product or service being offered.
• Purchase time frame within established limits.

The highest-grade sales leads are those that meet all of the agreed upon qualifying criteria. These sales leads are classified as Prospects and are to be contacted/ followed-up on first. -AZBroker

How many grades are there? Where do the best leads come from? -realtor

How many grades and the terminology to identify each is a decision each company will have to make for themselves. One company might classify sales leads as one of two (2) grades, High-grade or Low-grade, while another company uses three (3) High, Medium or Low. Other companies might factor in additional criteria such as engagement (Buyer initiated contact vs. Seller initiated contact), which requires breaking this down even further.

Sales lead sources is another ball of wax. ;) -AZBroker

Maybe I'll start another thread on lead sources. :yi

THANK YOU! thmbp2; -realtor

I define a lead as an interested prospect that has the ability to purchase your product or service (i.e. $$) and has evaluated enough information from qualified sources to make an informed buying decision within a reasonable time frame. -rogerbauer

A sales lead is a specific and tangible opportunity to make a sale. It is a term used prior to engaging in the actual selling process. -Ace Coldiron

This is a great question. It looks like you got your answer, but I had to chime in on this one. I work in the lead generating business and when I mention the word leads, people think all sorts of things. Some people think lists. I even heard one person say a lead is anyone who comes across your marketing piece that is in the market for what you are selling.

My definition of a lead is a prospect in your target market who is looking for what you sell and wants to talk with you. -Eric Galuppo

Dang.... in my business that would almost qualify as a referral.... ;bg

At worst, a lead such as you describe for me would be a qualified lead.

Aloha... Tom... shds; -rattus58

Hi,

Thanks for sharing such wonderful post. I feel For a sales lead to qualify as a sales prospect, or equivalently to move a lead from the process step sales lead to the process sales prospect, qualification must be performed and evaluated. Typically this involves identifying by direct interrogation the lead's product applicability, availability of funding, and time frame for purchase. This is also the entry point of sales funnel or sales pipeline. -mary92130