As lead generation is the first step of the sales process, both quality and quantity are important factors. Quality leads are leads that a salesperson has a good chance of closing. Every lead list will have a number of junk leads – people who are not qualified to buy the product for some reason – but the smaller the percentage of bad leads, the less time salespeople will waste while processing that list.
Lead generation often uses digital channels, and has been undergoing substantial changes in recent years from the rise of new online and social techniques. In particular, the abundance of information readily available online has led to the rise of the “self-directed buyer” and the emergence of new techniques to develop and qualify potential leads before passing them to sales.
The better qualified your leads are, the less time you’ll waste talking to people who aren’t actually candidates for your products. In essence, prospecting is finding people who have a problem that your product can solve, and offering it to them in a way that shows them the solution.
So the better qualified your leads are, the higher the percentage that you’ll be able to turn into sales (and thus the more total sales you’ll make).
Getting those qualified leads will either cost you time or cost you money. In other words, you can either pay someone to collect qualified leads for you or you can collect them yourself.