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Where did the concepts of “lead” and “lead generation” come from?

Posted: Sun Jan 12, 2025 8:25 am
by tanjimajuha20
Buying leads is a matter that every entrepreneur has encountered. After all, it is so tempting to simply buy ready-made clients without setting up your marketing. But it is not that simple. Let's look at everything point by point.

What are leads?
According to the generally accepted definition, leads are potential clients who have shown interest in your product and left their contact information for feedback. But if you look closely, the definition of a lead contains two concepts that do not contradict each other, but are still different. A potential client and a person who left their contact information are not the same thing. You can get contacts for feedback in many different ways. But let's first look at the history of the concept of a lead and lead generation. Who created and launched these terms and why?


The concepts of "lead" and stockholder database
"lead generation" were introduced by marketers and advertisers as a response to the claims of stupid salespeople "your advertising does not work, sales have not increased." As a result of creating a lead generation scheme, marketers and advertisers have relieved themselves of responsibility for sales growth, limiting themselves to only "bringing in potential clients." Now they can always object: "We provide a flow of potential clients by finding people interested in your product. If you cannot turn them into buyers, then this is your problem." The scheme is clear and good. But only if the leads are really contacts of potential clients. And if not? Then it turns out that lead sellers, having protected themselves, put their customers, buyers of these very leads, at risk. A vague definition, the lack of a clear gradation of leads by quality, the ability to pass off fake "contacts" as leads, all this gives dishonest people the opportunity to deceive their clients. How do they do it?

How do lead sellers deceive buyers?
There are several ways to cheat when selling leads.

Selling low-quality leads. The lead seller launches an ad with conditions unacceptable to the lead buyer. Most often with shamelessly low prices. A large number of leads are collected quickly and cheaply, but it is unlikely that such clients will be able to sell anything.
Selling the same leads to multiple buyers. The leads obtained are sold to multiple buyers at once, which reduces their value by a multiple of the number of people who bought these leads.
Selling obviously "left" leads. You've probably already seen an ad saying "fill out a short contact form and get money"? They simply buy completed forms, for example, for 100 rubles, and sell them as leads, for example, for 400-500 rubles. The numbers are just out of my head to show you t