Leads versus opportunities
Key Takeaway
A lead is an interested prospect you still need to qualify, and an opportunity is a qualified, viable deal. Lead conversion turns a qualified lead into an account, a contact and, optionally, an opportunity.
Leads and opportunities belong to different points in the sales process. You use a lead to decide whether a business relationship is possible. You use an opportunity to track the details of a viable deal. Lead conversion connects the two, so you also need to know what happens to the lead and its data during conversion.
Leads versus opportunities
| Lead | Opportunity | |
|---|---|---|
| What it is | A potential sales prospect, either a person or a company, that has expressed interest but has not yet become a customer | A qualified lead that is considered a viable business deal |
| Where it sits in the sales process | The early stage | Past the first stages of evaluation |
| What you use it for | Gathering information, assessing interest and deciding whether a business relationship is possible | Tracking detailed information about the potential sale: expected revenue, sales stage, close date and probability of closing |
Because a lead doesn't hold those sale details, you need an opportunity to track them. Lead conversion is the step that creates the opportunity.
Each company sets its own criteria for qualifying and converting leads. The Lead Status field shows where each lead is in that process.