What is a lead versus a contact?

A lead is a person who has taken a specific action indicating interest in solving a problem that aligns with a company's solution, such as booking a demo, requesting a quote, or engaging with an intent-based offer. A contact is any individual whose information has been collected, regardless of whether they have demonstrated intent, need, or fit for the solution.

The distinction matters because treating all contacts as leads inflates pipeline reporting and wastes sales resources. A person who downloaded an ebook or registered for a webinar is a contact with known information, but they have not demonstrated intent to solve a specific problem. Routing these contacts to sales produces the common complaint that leads are not ready.

The qualifying factors that separate a lead from a contact are intent and fit. Intent means the person is seeking a specific outcome that aligns with the solution. Fit means they match the target buyer profile. A contact who matches the profile but has not demonstrated intent is a marketing contact, not a sales lead. When companies conflate the two, they generate volume without generating pipeline.