The Value of a Qualified Lead

In any business, you need as many good sales leads as you can find. Not all leads, however, will turn into sales. This is because a customer may have changed his or her mind about a project or simply doesn't want to spend what you are charging for your goods or services. It is, therefore, critical that you attempt to qualify a lead or only accept qualified leads before making a sales pitch.

What is a qualified lead? A qualified lead is one that is serious about buying a product or service or meets criteria to do so. For instance, someone looking to buy a house may not be qualified if he or she only makes $10,000 a year and has no savings. If that person makes $100,000 a year and has a down payment already lined up, it makes that person more likely to be ready to make a purchase.

How do you decide if a lead is qualified? For the most part, that is up to you, and what one person may consider a qualified lead another may not contact. Making sure that an individual is qualified ahead of time makes it less likely that you will do an estimate or make a sales call without being able to close a sale. When you aren't able to close a lead, it can represent wasted time as well as an opportunity cost that cannot be recouped.