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Leads Prospects and the Huge Gap Between

Written by: Paul Johnson

Article Overview: What is a lead, and what is a prospect? Avoid confusing leads with prospects, and you'll make more sales. Get marketing and sales using the same language to improve teamwork and results. Definitions of leads and prospects you can use.

Leads Prospects and the Huge Gap Between

© 2008 Paul Johnson. All rights reserved.

The leads marketing delivers to the sales team never seem good enough. Either the leads are "bad" and are wastes of a salesperson's time, or there are just not enough "good" ones. If sales had more good prospects, the company would have more sales. Perhaps sales and marketing could work together more successfully if all agreed on what is a lead and what is a prospect.

GOTTA WANT IT!

A lead wants what you have, pure and simple. Somehow they've gotten the idea that what you have will improve their situation, so much so that they're willing to raise their hand and identify themselves. You have succeeded in moving them from anonymity. They have "stepped into the light" and are willing to engage with you in conversation, if only temporarily. We describe people at this stage of the buying cycle as Engaged.

Sometimes this process reveals that we have a "bad" lead; these are people who don't really want what we are selling, but want something else from us, usually for free!

WILLING WALLET.

A prospect not only (1) wants what you have, but also has (2) ability to buy and (3) reason to buy now.

A true prospect can afford what you're selling. That means they have available -- or can get -- the budget needed to make the purchase. Plus they have the authority to make the purchase and sign the check.

A true prospect also has a reason to buy now. Perhaps there's an external compelling event that will require them to make a decision soon. Or perhaps they harbor an internal reason -- often emotional in nature -- that carries enough drive to induce them to open up their wallet and buy now.

SHOPPING? STOP IT!

Somewhere between leads and prospects we have shoppers. Those are buyers who want what you have, and (2) have the ability to buy, but no particular reason to buy today. Much sales (and marketing) energy is expended converting shoppers into buyers. Prospects are easier to convert, because we know they're going to buy from somebody, and soon.

You have a true prospect if you can answer "Yes" to these 3 questions:
1. Do they want what we have?
2. Do they have the ability to buy?
3. Do they have a reason to buy NOW?

The questions we choose to ask people who engage with us need to help us understand the answers to those 3 questions. We'll get more positive decisions with our selling efforts when we can establish that a lead truly is a prospect.

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Article Tags: anonymity, budget, marketing energy, paul johnson, prospects, sales and marketing, salesperson, shoppers, shopping, wallet



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