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lead generation

This definition is part of our Essential Guide: IT channel sales and marketing strategy for the digital era

Lead generation is the use of a computer program, a database, the Internet, or a specialized service to obtain or receive information for the purpose of expanding the scope of a business, increasing sales revenues, looking for a job or for new clients or conducting specialized research. Leads can consist of the names and addresses (or e-mail addresses) of individuals, corporations, institutions or agencies. Lists of leads can be gathered or filtered from targeted databases such as telephone and Internet directories.

On the Internet, Web sites and search engines can be excellent sources of leads, although the process can be time consuming. Web sites, such as TechTarget.com, have evolved for the specific purpose of making it easy for personnel to obtain leads. Companies have emerged that specialize in lead generation for a fee. They perform the research, and then provide the client with a list of leads. Services of this kind have been used by insurance companies, real estate agents, wholesalers, marketing firms, private investigators, research scientists and educational institutions.

Several vendors offer computer programs designed to assist businesses in lead generation. Ethics are an important consideration in the choice and implementation of such programs. The use of spyware, Trojans or other intrusive means of gathering information without the knowledge or consent of targeted individuals or entities is frowned upon. Mass unsolicited e-mail advertising (or spam) is also considered unethical by many, and it can result in electronic blacklisting.

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This was last updated in February 2016

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