In layman terms, a lead is anyone interested in the service or product provided by a business.
The way businesses know whether or not you are a potential lead is by understanding from you whether their services will interest you or not. You might have filled some online surveys or given your details or even subscribed to a certain newsletter.
Companies gather this information and contact you based on whether you have shown any liking or interest in their products or services associated with what they do. It’s as simple as that.
Leads have the potential of being conversions. Meaning, these interested people might purchase the product or service by this business that approaches them. However, not all leads become customers.
All said and done, regardless of how great a company it is or how great a service it provides, all fail if nobody knows about its potential. So, if you are a business owner, your primary and most important goal should be getting your word out there. That’s your only chance of getting any leads.