lead: definition
A contact potentially interested in your product: someone who has left a trace (email, form, inquiry) without being a customer yet.
By Isidore Mikorey-Nilsson · May 12, 2026
Definition
A lead is an identified prospect who is not yet qualified or converted. The whole challenge of acquisition is generating quality leads (close to your ICP) and then moving them forward to purchase, without flooding your pipeline with contacts who will never buy. A high volume of leads is worth nothing if the quality isn't there.
Why it matters
The lead is the first measurable unit of your acquisition: it's the basis for calculating your conversion rates and the cost of each step. Confusing lead volume with lead quality is the mistake that blows up your CAC without growing revenue.
When to use it
You start talking about leads as soon as you capture contacts, through a lead magnet, a form, or an outreach. In practice, you then qualify them (do they match the ICP, do they have a real need) so that sales only works the ones with a genuine chance of buying.
Example
A visitor who downloads your lead magnet and leaves their email becomes a lead.
Common mistakes
- Chasing volume at the expense of lead quality.
- Treating all leads the same without qualifying them.
- Counting a lead as an almost-certain sale.
Don't confuse it with
- prospect: A prospect is a lead you've qualified as a relevant target; every prospect is a lead, but not the other way around.
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Frequently asked questions
- What's the difference between a lead and a customer?
- A lead hasn't paid yet; they're at the top or middle of the funnel. A customer has bought.