Lead vs Prospect vs Opportunity
These three words describe the same person at increasingly qualified stages of a sales process. Mixing them up inflates the pipeline with people who are not actually close to buying.
Lead
A person or organization that has shown initial interest in your business or fits your target market profile. They sit at the top of the sales funnel.
Prospect
A qualified lead who has been evaluated and fits the specific target criteria of a company's ideal customer. Qualification typically uses the BANT framework.
Opportunity
A qualified prospect who has entered the active sales cycle and has a high probability of closing a deal. It carries a specific deal value in the pipeline.
Anyone who showed initial interest
A lead confirmed to fit your target customer profile
A prospect with an active, budgeted need being actively pursued
None yet, often marketing-owned
Early qualifying conversations
Active negotiation toward a close
Qualification call
Needs assessment
Proposal or contract
| Definition | Anyone who showed initial interest | A lead confirmed to fit your target customer profile | A prospect with an active, budgeted need being actively pursued |
|---|---|---|---|
| Sales involvement | None yet, often marketing-owned | Early qualifying conversations | Active negotiation toward a close |
| Typical next step | Qualification call | Needs assessment | Proposal or contract |