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Prospecting & Lead Generation: Is there really a difference?

by JKirby
9 replies
Lead Generation: In marketing, lead generation is the generation of consumer interest or inquiry into products or services of a business. Leads can be created for purposes such as list building, e-newsletter list acquisition or for sales leads.

Sales Prospecting: Targeting of "prospects" and the initial communications with them in the hopes that these communications will eventually lead to a closed sale and a new client or customer.

Sounds very similar, I think they are more interchangable than people make them out to be. I find that while you are prospecting, you are setting up lead generation techniques to get qualified individuals, whereas when you set up a lead generation 'funnel' you are also targeting a market or initial pool of prospects to get an IOI with them.

A lot of people associate prospecting with a more direct, aggressive sales approach, but prospecting doesn't have to be in the form of a phone call. The 'initial' communication with them can be with your lead generation funnel.

So, what do you think? Are they in practice systemically similar? Or do they serve different purposes? Which of these terms do you use in your business?


EDIT: My opinion is that they are interchangeable. Lead Generation is more associated with the marketing aspect, whereas prospecting is closely related to the sales process. Same end goal, two different terms.
#difference #generation #lead #prospecting
  • Profile picture of the author Claude Whitacre
    They can be almost the same thing. Maybe the exact same thing.

    Most people prefer to call it lead generation, because it doesn't sound like sales. And most people will do anything to not think of what they do...as sales.

    I think of Prospecting as talking to a person, hoping to make an immediate sale, or make an appointment.

    Lead generation (in my view anyway) is more like a funnel. They request information, you send it, they subscribe to a newsletter, they get another offer...there are upsells. But maybe no personal contact.

    Just a thought.
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    • Profile picture of the author socialentry
      In my city, the way that it's used is that lead generator (or opener) is a cold caller that finds qualified and interested prospects for a closer

      They have to sell the idea it is worthwhile to go through the next hoop. So yes, at least in that context, it very much is a sales or prospecting role.

      From my experience, most of the sales terminology is a bit arbitrary and varies from company to company and from industry to industry. at least where I live, there doesn't seem to be a clear consensus as to what means what.
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      • Profile picture of the author Claude Whitacre
        Originally Posted by socialentry View Post

        In my city, the way that it's used is that lead generator (or opener) is a cold caller that finds qualified and interested prospects for a closer

        They have to sell the idea it is worthwhile to go through the next hoop. So yes, at least in that context, it very much is a sales or prospecting role.

        From my experience, most of the sales terminology is a bit arbitrary and varies from company to company and from industry to industry. at least where I live, there doesn't seem to be a clear consensus as to what means what.
        In fact, it may just be that the word Prospecting is being replaced by the words Lead Generation.
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        • Profile picture of the author JKirby
          Originally Posted by Claude Whitacre View Post

          In fact, it may just be that the word Prospecting is being replaced by the words Lead Generation.
          I think so too. It's a better 'accepted' word. It's a bit more passive and doesn't sound as aggressive as prospecting. Also I agree on your previous post about everyone staying away from sales, even though that's exactly what they are in!
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  • Profile picture of the author helisell
    My .02c is

    There are 2 types of prospecting.

    1. Direct Solicitation. Trying to sell something (appointment/product etc)

    2. Looking for leads. If you went to your perfect prospect but instead of trying
    to sell to them you asked "Who do you know that might be interested in....'fill in the blank'?"
    2 things might happen...1. They'd give you a lead 2. They'd say 'well I'm interested in that'

    Back when I was a lad I used to sell a lot of cars to people who I'd asked "who do you know that might be thinking of changing their car" It was amazing how many said " I might be"

    Like I said my .02c
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  • Profile picture of the author JakeFromStateFarm
    Lead Generation changes the mood of the conversation. If I sent you a piece of mail or you read an ad of mine and then you made the overture to me, it's inherently less adversarial.

    Prospecting done on the phone is much harder and there is a tension immediately because of the fact you need to push them to stay on the line.

    Not that I have a preference or anything
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    • Profile picture of the author yukon
      Banned
      Originally Posted by JakeFromStateFarm View Post

      Lead Generation changes the mood of the conversation. If I sent you a piece of mail or you read an ad of mine and then you made the overture to me, it's inherently less adversarial.

      Prospecting done on the phone is much harder and there is a tension immediately because of the fact you need to push them to stay on the line.

      Not that I have a preference or anything
      Agreed, it's far easier to make a sale when traffic feels obligated to make the initial contact.

      One thing I do on my ads is hint at important details but not give out too much info., that gets traffic interested enough to make contact on their own.
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      • Profile picture of the author kirbymarketingconcierge
        I'm a 'broker" - I help biz., get biz.

        A middleman to bring good products/services to help their business, if they do what I recommend.

        And, if the small business does not do what I recommend, they will be broker.

        * Ever notice that atty's have clients, doctors have patients, and the "lowly" auto mechanic has customers???


        words, labels, stereotypes ... all content that has impact is marketing

        hope everyone has a great week
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  • Profile picture of the author Todd Malizia
    Hi,

    I'm new to the forum and look forward to being a member here.

    I also think these two terms often get used interchangeably, perhaps because they both have the same end goal in mind: to get new customers or partners to grow the business. But, I've always thought of prospecting as more of a one-on-one type of activity and lead generation as more of a mass marketing strategy.

    Along these lines, I think prospecting is about networking and effective communication. Some important concepts here are creating rapport and curiosity.

    As for offline lead generation, I've always viewed it as being about activities such as posting ads on cork boards or in publications, distributing flyers, using press releases, and doing direct mail campaigns. Basically, an emphasis on copywriting.

    Then, for online lead generation, you have lead capture pages, blogging, and online advertisements to name a few.
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