What Is Lead Generation?

What is lead generation? Definition, types (MQL, SQL, PQL), and how the lead gen process works. Inbound vs outbound.

Lead generation is the process of finding people who might buy, capturing their contact information, and moving them toward a sale. You identify potential customers (through search, content, ads, events, or referrals), get permission to contact them, then nurture and qualify until they're ready for sales. The goal is a pipeline of leads that convert instead of cold outreach to strangers.

Definition in practice

A lead is someone who has shown interest and given you a way to follow up (email, phone, form submit). Lead generation is everything you do to attract and capture those people: SEO and content, Google Business Profile, landing pages, lead magnets, events, paid ads, referrals. Inbound lead gen pulls people in when they search or engage; outbound reaches them (calls, email, LinkedIn). Most businesses use both.

Types of leads: MQL, SQL, PQL

Not every lead is ready to buy. Marketers often label leads by stage. A marketing qualified lead (MQL) has taken a step that shows interest (downloaded a guide, filled a form) but may not be ready to talk to sales. A sales qualified lead (SQL) has been vetted and is ready for a sales conversation. Some teams use product qualified lead (PQL) when the lead has used a trial or free tier and shown intent. Understanding these types helps you route leads correctly and avoid wasting sales time on cold contacts. For how to score and qualify: lead qualification and scoring.

How the lead gen process works

Typical flow: awareness (they find you via search, content, or ads), capture (they give contact info in exchange for something useful), nurture (email or content keeps them engaged), qualification (you decide who gets passed to sales), and handoff (sales closes). The lead generation funnel (TOFU, MOFU, BOFU) maps tactics to these stages. What you do at the top (blog, GBP, SEO) differs from the middle (webinars, demos) and bottom (pricing, proposals).

Back to the full lead generation guide, or lead generation funnel and lead scoring. Want more leads without doing it yourself? Free audit.