Accounts are the companies you're doing business with. You can also do business with individual people (like solo contractors) using something called Person Accounts. Contacts are the people who work at an Account. Leads are potential prospects. You haven't yet qualified that they are ready to buy or what product they need. You don't have to use Leads, but they can be helpful if you have team selling, or if you have different sales processes for prospects and qualified buyers. Opportunities are qualified leads that you've converted. When you convert the Lead, you create an Account and Contact along with the Opportunity.
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