Just like prospecting for gold, sales people prospect for sales leads or customers. Sales leads are potential contacts a seller seeks in order to close a deal or agreement for services or supplies. Sales leads are generally considered the first step in the entire sales process.

A "lead" can be an individual or business that has shown interest in a service. A sales person might seek sales leads out independently or purchase a data base. The perfect conclusion to a lead is a presentation, sale or agreement.

Most businesses need sales leads to survive. An advertising agency looks for accounts, real estate agents look for home buyers, and consultants look for clients. Some businesses even specialize exclusively in lead consulting.

For example, an admissions advisor at an online college might call people who have shown interest in their school by filling out a form on the college website. The form information becomes the lead. Forms like this usually consist of a name, email address, mailing address and phone number. Submitting this information voluntarily makes this person a sales lead.

Once the potential student starts giving the school money for their education, she becomes a student, and consequently she goes from sales lead to sale. If that person decides not to become a student, they remain in the sales leads database and can be contacted again for future interest.

Developing sales leads can be done in many ways and is often approached systematically. The purchase of sales lead data bases are popular with businesses that thrive primarily on outside sales. These databases consist of a business owner's name, location, phone number, fax and any other relevant information.

Sales leads can be acquired through word-of-mouth, internet research and trade show participation. Lead prospecting can be a full-time career, or just part of the final sales goal and is important in establishing business relationships.