Definitions
What is the difference between a lead and a prospect?
Last reviewed 22 April 2026 · Reviewed by Jake McQuillan
Quick answer
What is the difference between a lead and a prospect?
A lead has given contact details; a prospect has been qualified as having the right need, assets and timeline. Prospects convert at 3-5x the rate of raw leads.
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Terminology varies, but in a UK IFA firm a useful distinction is: a lead is any person who has provided contact details via an ad or form; a prospect is a lead who has been qualified on need, assets, timeline and suitability. Prospects typically convert to clients at 3-5x the rate of raw leads. Reporting should separate the two at every stage.
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