Sales · business glossary
What is Lead?
By Shivam Bhandari · Reviewed 31 October 2026 · How we write
definition
A person or company that has shown some interest in what you sell but hasn't yet been qualified as a serious prospect.
Lead explained
A lead is a person or business that has shown interest in what you sell — by enquiring, signing up or engaging — but hasn't bought yet.
example
Someone who downloads your price list and leaves a phone number is a lead.
why it matters
Leads are the raw material of sales; tracking their source shows which marketing works.
common mistake
Treating every lead as equally valuable instead of qualifying them.
Frequently asked questions
What is Lead?
A person or company that has shown some interest in what you sell but hasn't yet been qualified as a serious prospect. A lead is a person or business that has shown interest in what you sell — by enquiring, signing up or engaging — but hasn't bought yet.
Why does Lead matter?
Leads are the raw material of sales; tracking their source shows which marketing works.
What is a common mistake with Lead?
Treating every lead as equally valuable instead of qualifying them.
Related terms
Qualified lead
A lead that has been checked against real buying criteria (budget, authority, need, timeline) and confirmed worth pursuing seriously.
Sales funnel
The stages a prospect moves through from first contact to closed sale, used to track where deals are getting stuck.
BANT
A lead-qualifying checklist covering Budget, Authority, Need, and Timeline, used to judge how ready a prospect really is to buy.