What’s the Difference Between a Lead and a Prospect? (And Why Most People Get It Wrong)

If you're a founder or marketer in India—especially in B2B—you’ve probably heard these terms thrown around in every sales meeting, agency pitch, and LinkedIn post:

✅ Lead

✅ Qualified Lead

✅ Prospect

✅ Opportunity

Most people think these words are interchangeable. They're not.

This confusion is why so many lead generation campaigns fail—and why marketers end up delivering junk to their sales teams.

Let’s cut through the jargon and get to the real difference between a lead and a prospect.

Let’s start with this:

“Some random name at a company isn’t a lead.”

Just because you have someone’s phone number or email ID doesn’t mean they’re a lead. Yet many agencies proudly sell you a list and call it “leads.”

That’s just data.

1️⃣ Lead

A lead is someone who has expressed interest in your product or service—even if it’s minimal.

Examples that make sense in India:

• Someone who filled your Meta Ads form saying “I want to know more.”

• Someone who clicked “Get Quote” on your website.

• Someone who dropped their business card at your trade fair stall in Mumbai.

• Even someone who replied “Tell me more” on your WhatsApp Business broadcast.

  
  

Key point: They have raised their hand.

But…

• They may have no budget.

• They may have no authority to buy.

• They may not even understand what you sell.

• They might just be curious.

This is the “top of funnel” crowd. Don’t mistake it for a ready-to-buy customer.

2️⃣ Qualified Lead

Now you’re moving down the funnel. A qualified lead is not just someone who showed interest—they’re someone who could actually buy.

Think of this as your first level of filtering.

In India, that might mean:

• A procurement manager at an SME who’s asked for a quote and confirmed budget range.

• A startup founder who wants your SaaS tool and has told you they’re planning to onboard in 1-2 months.

• A hospital admin who not only enquired about your equipment but also said they have the funds allocated this quarter.

A qualified lead typically has:✅ Expressed clear interest.✅ A real need for your product.✅ The budget (or at least access to it).✅ Authority or influence over the buying decision.✅ A near-term timeline.

If your sales team is chasing unqualified leads, you’re wasting everyone’s time.

3️⃣ Prospect

This is where things get real.

A prospect is a qualified lead you’re actively engaging in the sales process.

It’s someone who:

• Has acknowledged your solution is a potential fit.

• Is willing to talk in detail.

• Has started a buying conversation with you.

example:

You’ve had a Zoom call with the CEO and finance head, and they’ve asked for a formal proposal.

This is no longer just interest—it’s an active opportunity to sell.

4️⃣ Opportunity

This is the gold standard in your CRM.

An opportunity is a deal you’re actually working.

✅ The prospect has agreed your product may be a fit.

✅ You’ve confirmed budget, authority, timeline, and need.

✅ Both sides are discussing terms, pricing, contract details.

It’s what sales teams forecast.

Indian example:

The corporate client has your proposal, legal is reviewing the contract, and you’re negotiating final pricing.

The Big Mistake Founders and Marketers Make

Many lead gen agencies in India will sell you data and call it leads.

They’ll hand you a CSV of “decision-makers in India” with names, numbers, and emails.

🚩 That’s not a lead.

🚩 That’s a cold list.

🚩 That’s what you market to to generate leads.

If you don’t know the difference, you’ll waste lakhs on campaigns chasing people who were never going to buy.

TL;DR – Your Quick Hierarchy

Here’s the plain truth:

✅ Data: Just names and numbers.

✅ Lead: Expressed interest.

✅ Qualified Lead: Has intent, need, and budget.

✅ Prospect: Engaged in buying conversation.

✅ Opportunity: Deal being actively worked.

Why Does This Matter?

Because if you don't understand the difference:

• Your sales team will hate marketing for sending “useless leads.”

• Your CAC (Customer Acquisition Cost) will explode.

• Your conversion rates will tank.

• Your brand will lose trust in the market.

If you want marketing and sales to work together, you need to define these stages clearly.

Final Thought

Stop buying data and calling it leads.

Stop calling leads your pipeline.

Stop forecasting wishful thinking as opportunities.

The better you define these stages, the better your marketing will perform—and the happier your sales team will be.