Prospecting vs. Lead Generation

Can someone explain to me the difference between the terms Prospecting & Lead Generation?

I thought they both meant the same thing, to generate leads or prospects.

Or do the terms mean different things to different industries?

Thanks,
Matt

Matt

Thanks for asking, that's a good question.

Let me give you my view on the distinction

When I think of prospecting as I did when I was in real estate, I would call homeowners out of the cross reference directory and try to find someone who was thinking of selling now or in the future.

When I think of lead generation , I think of how I would place ads in the paper, or farm a subdivision with a postcard or letter ....the "prospect" who responded was now considered a "lead"

So , in my opinion I would say prospecting is more of a "physical" approach such as calling or knocking on the door as opposed to lead generation being a more "passive"approach such as mailings, classified ads , etc.

What type of business are you talking about?

I don't have any business or industry in mind. I've always heard the two terms used and just thought they meant the same.

Now that I think about your definition, I agree with you. I've always heard the term prospecting in relation to real estate and insurance sales. Industries where someone is "pounding the pavement" to get leads.

Lead generation seems to relate to letting tools generate the leads for you, as you stated.

Thanks!

The following info might give those interested a better understanding...

10 Lead Generation (Prospecting) Tips for Sales People
http://blog.startwithalead.com/weblo...d_generat.html

How to Replace Prospecting with Lead Generation Advertising
http://www.perrymarshall.com/marketi...ers_part_1.pdf

Reframe Prospecting Into Lead Generation Activities
http://realtytimes.com/rtpages/20050...amingterms.htm

Lots more Good stuff on Lead Generation & Money making ideas in the Sowpub archives...
http://www.sowpub.com/forum/search.php

Phil

Originally Posted by CopyCub

Can someone explain to me the difference between the terms Prospecting & Lead Generation?

I thought they both meant the same thing, to generate leads or prospects.

Or do the terms mean different things to different industries?

Thanks,
Matt

Hi Matt, Thanks for asking about leads VS prospecting.

You have received some good answers in the posts above. But I would like to add one thing to the mix. Even if you do not need to prospect or get leads for your own business you can make money with leads BUT not with prospects. Or at least not as much in my opinion.

A prospect is a "lead" that is not qualified. Oh, you may know somethings about the prospect like: they may be in the market for your product or service or you may know that they NEED your service. But you do not know if

Does the prospect have a need or an application for your product or service?
• What is the prospect's role in the decision-making process?
• What is the prospect's timing for purchase or implementation?
• What is the status of the prospect's budget?
• What is the size of the opportunity?

and a hundred other questions. What is even worse is that each industry or category of businesses have different questions that need to be asked and answered of a prospect to turn them in to a lead.

I can get prospects from the telephone book if all I need is a category, name, address and phone number. But I will spend a lot of time qualifying the prospects to turn them in to a Hot lead.

IMO, leads are ready, willing and able to move ahead with the sale or service and prospects are people that you have to find out IF they are.

I can take a lead for a business and sell that lead to them for $100 but would be lucky to get a couple of bucks for a prospect. I have a report on just this subject that shows how to make money supplying LEADS to businesses.

A free copy is available to all sowpubbers through my signature file.

Anyway that is my take on "leads: VS "prospects"

Best of success,

Skip Rosell