[GTM glossary](/glossary.md) Lead generation

Sales Development & Prospecting

# Lead generation

In short

Lead generation is the set of activities that identify potential buyers and capture their contact details and interest so sales can follow up. A lead is a person or company that has shown interest or matches your target profile.

Lead generation happens at the top of the funnel and feeds the pipeline. It is not the same as closing: its job is to produce enough qualified conversations, not just a large number of names.

## Two main approaches

* **Inbound:** Buyers find you through content, search, events, or referrals and raise their hand.
* **Outbound:** Your team identifies target accounts and contacts them through email, calls, and social.

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## The lead generation process

### 1. Define your target

Write your ideal customer profile and buyer personas so everyone knows who counts as a good lead.

### 2. Choose channels

Match channels to where your buyers are: search and content, events, email, LinkedIn, calls, partners, paid ads.

### 3. Capture and enrich

Collect contact details through forms or data sources, and add company information.

### 4. Qualify and hand off

Score leads for fit and intent, then route them to sales with clear criteria.

### 5. Measure and adjust

Track conversion at each step and cut channels that bring unqualified volume.

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## Metrics that matter

* **Qualified leads:** Leads meeting your criteria, not total sign-ups.
* **Conversion rate by stage:** How many move from lead to meeting to opportunity.
* **Cost per lead:** Spend divided by leads, compared with cost per qualified lead.
* **Pipeline and revenue sourced:** What each channel contributes to closed business.

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## Common mistakes

Chasing volume over fit, running channels without a clear target, slow follow-up, and no agreement between sales and marketing on what a good lead is. Example: a team with 500 monthly leads, of which 20 are qualified, has a quality problem, not a volume problem.

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## Lead generation FAQs

**What is lead generation?**

Lead generation is the process of attracting potential buyers and capturing their interest and contact details so sales can follow up. It includes inbound methods like content and search and outbound methods like email and calls.

**What are the main types of lead generation?**

The two main types are inbound, where buyers find you through content, search, events, or referrals, and outbound, where your team contacts target accounts by email, phone, or social. Many teams combine both.

**How do you generate B2B leads?**

Define your ideal customer profile, choose channels where those buyers are active, capture and enrich contact details, qualify leads on fit and intent, and route them quickly to sales. Then track conversion and refine.

**How do you measure lead generation performance?**

Look past total volume at qualified leads, conversion from lead to meeting and opportunity, cost per qualified lead, speed of follow-up, and pipeline or revenue sourced by each channel.

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## More related phrases

* [Lead generation software](/glossary/lead-generation-software.md)
* [Lead list](/glossary/lead-list.md)
* [Predictive lead generation](/glossary/predictive-lead-generation.md)

## Similar phrases

* [Inbound lead generation](/glossary/inbound-lead-generation.md)  
Inbound lead generation attracts prospects who find you through content, search, and referrals, then capture their interest through forms, demos, and other conversion points.
* [Lead generation funnel](/glossary/lead-generation-funnel.md)  
A lead generation funnel maps the steps that turn strangers into qualified leads, from first awareness to a handoff to sales.
* [B2B lead generation](/glossary/b2b-lead-generation.md)  
B2B lead generation is the process of finding and attracting businesses and buyers who may need your product, and turning them into prospects your sales team can work.
* [Outbound lead generation](/glossary/outbound-lead-generation.md)  
Outbound lead generation is the process of proactively identifying target buyers and contacting them first, instead of waiting for them to come to you.
* [Lead qualification](/glossary/lead-qualification.md)  
Lead qualification is the step where you decide whether a lead fits and is ready enough for sales to pursue, so reps focus on the right prospects.