Lead generation
What is lead generation?
Lead generation is the process of finding people or businesses who might buy from you and getting a way to reach them. It covers inbound methods, where interested people come to you through content, search or referrals, and outbound methods, where you identify and contact prospects yourself.
The output is a stream of leads that marketing nurtures and sales qualifies. Good lead generation is measured by how many leads become customers, not just by how many are collected.
Why lead generation matters
Without a steady flow of leads, sales stalls. Most early-stage companies combine a few channels, measure which produce customers and double down on those.
How to do lead generation
- Write your ideal customer profile.
- Pick two or three channels where those customers can be found or reached.
- Build lists for outbound (directories, Google Maps, communities) and offers for inbound (a guide, a free tool, a demo).
- Track each lead’s source and status.
- Review monthly: which sources produced customers, and at what cost?
Lead generation FAQ
What are the best lead generation channels?
It depends on who you sell to. Local businesses are easy to find on Google Maps; developers gather on GitHub, Hacker News and Reddit; B2B buyers respond to targeted outreach and content. Test a few channels and keep the ones that produce customers.
Is lead generation the same as sales?
No. Lead generation creates the opportunities; sales turns qualified leads into customers. In small companies the same person often does both.
Related marketing terms
A lead is a person or business that might buy from you: someone who showed interest or fits your ideal customer, with a way to contact them.
B2B lead generation is finding businesses that could buy your product and the right people inside them to contact, for longer, larger sales.
Prospecting is searching for and qualifying potential customers, then making first contact to start a sales conversation.
Inbound marketing attracts customers who come to you through useful content, search, communities and referrals, rather than cold outreach.
Outbound marketing reaches out to people who have not asked to hear from you yet, through cold outreach, ads, events and direct mail.
A lead magnet is something useful offered for free, such as a guide, template, tool or trial, in exchange for a visitor’s email.