Lead Qualification: Process & Overview

An error occurred trying to load this video.

Try refreshing the page, or contact customer support.

Coming up next: Limited Decision Making: Definition & Examples

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
Your next lesson will play in 10 seconds
  • 0:03 What Is Lead Qualification?
  • 0:38 Process
  • 2:24 Example
  • 3:00 Lesson Summary
Add to Add to Add to

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Login or Sign up

Lesson Transcript
Instructor: Shawn Grimsley
Trying to sell to customers that don't need, don't want or can't afford your product or service is pointless. In this lesson, you'll learn about lead qualification, including what it is and the process by which it is done. A short quiz follows the lesson.

What Is Lead Qualification?

Lead qualification is the process of determining whether a potential customer is a suitable candidate to purchase the product or service the salesperson is selling. Qualifying a prospect includes determining the following:

  • Does the product or service fulfill the prospect's needs or wants?
  • Can the prospect afford to purchase the product or service?
  • Is the prospect eligible to buy? Not everyone can buy an automatic firearm, for example.
  • Does the prospect have the authority to buy? Does the employee have the authority to make a purchase for the company, for instance?


Some have proposed a three-step qualification process:

1. Initial Screening

At this step, you're just trying to identify leads that are the most promising. This can be accomplished through outbound communications, such as public relations, banner ads, emails, advertising, trade shows, direct mail and telemarketing. For example, you may send out direct mail pieces that have postage-free reply cards asking for more information or telemarketing based upon key demographic data used to set-up appointments. Sometimes you will use inbound communications, in which the customer contacts you directly through a phone call or web registration, for example. Sometimes promotional gifts, like an investment newsletter or a coffee mug, are offered as an inducement to seek more information. Again, the idea is to reduce your leads down to the most promising before spending time with each for qualification purposes.

2. Lead Qualification

Once you have gathered your leads, you must qualify them. Once again, you want to determine whether you can meet a prospect's needs, whether the prospect can afford it, whether the prospect can buy it and whether the prospect has the authority to make the purchase if representing an organization. This is usually done through a set of open-ended and closed-ended questions. An open-ended question is a structured question that doesn't require a specific response, such as 'what are your current business needs?' A closed-ended question requires a specific response. Examples of a closed-ended question include the typical yes-no question or 'how old are you?'

3. Sales Opportunity

If the prospect meets all the qualification criteria, then you have a sales opportunity.

To unlock this lesson you must be a Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use

Become a member and start learning now.
Become a Member  Back
What teachers are saying about
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 160 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create An Account