The difference between a sales lead and a sales opportunity

In the world of sales you’ll often find yourself up against terminology, which, on the face of it, appears to be talking about the same thing in a vaguely different way. Phrases such as, ‘sales lead’ and, ‘sales opportunity’, for example, are obviously referring to the types of contact that you’ll come across on a daily basis, or be seeking to ‘hook’, but how do you know which one is your most likely ally; what’s the difference between a sales lead and a sales opportunity, and how do you capture either?

The difference between a sales lead and a sales opportunity

The difference between a sales lead and a sales opportunity. Click To Tweet

The fishing analogy

I’ve often seen the field of sales referred to in fishing terms, whereby you, or your sales staff, can be identified as the fisherman, your product or service is the fishing rod, and the many contacts that you’re likely to come into contact with are the fish; single fish swim alone, while multiple fish, or accounts, tend to flock together. The sole purpose of a sales team is to hook as many fish as possible, and to create as many shoals of those fish, or accounts, as it possibly can. However, in a sales territory as vast as the ocean how do you know which fish to target, and when to sail your boat onwards? The key to answering this question is in knowing the difference between a sales lead and a sales opportunity; that is, to identify the elusive Nemo from any other unidentifiable fish.

What is a sales lead?

To put it simply a sales lead can be compared to any other fish in the sea; it is a contact or account about which very little information is known. This is a person you have come across in passing – a contact that has remained another name in your address book. If you took the time to find out a little more, or to make a connection regarding your business, there is a chance to convert these details into an opportunity, but until you make that move you’ll never know.

What is a sales opportunity?

If a sales lead is any old fish, then an opportunity is Nemo – the fish that everybody is looking for. A sales opportunity is just that; a contact you have committed into your fold that you know to be interested in working with you, or purchasing from you. So, why aren’t they a fully-fledged client or associate? Like everything in business it is up to you to embrace every opportunity, and to convert opportunities into successes. Are you ready to catch your Nemo?

Fishing aside, the difference between a sales opportunity and a sales lead should now be much clearer. While an opportunity is your golden chance to make a sale, and to form a relationship with a contact you know to be interested, a lead is a contact that, while known to you, is otherwise unquantifiable. You have two choices from this moment on; to carry on in search of those sales opportunities, moving past leads in order to target contacts you know to be ‘sure things’, or to begin communication with the ‘unknown’ contact and convert otherwise disappointing catches into prize hauls. I know which action I would be taking right now – yes, there are plenty of fish in the sea, but when it comes to sales you can’t afford to be so selective.

Login