Strangers become prospects when they show interest. Lead generation is the process of attracting and converting those strangers into people who have given permission for further contact or who have otherwise indicated potential interest in a product or service. Methods include content offers, webinars, advertising, events, and search-engine visibility.

A lead is typically captured through a form that collects contact information in exchange for something of value—a white paper, a trial, a consultation. The quality of leads varies; scoring systems help sales teams prioritize those most likely to convert. Volume without quality wastes effort; quality without volume limits growth.

Lead generation sits at the top of the marketing and sales funnel. Its effectiveness is measured by cost per lead, conversion rates through subsequent stages, and ultimately by the revenue those leads produce. Continuous testing of offers, channels, and messaging is required to keep the pipeline filled with the right prospects.