Lead generation falls within the second stage of the inbound marketing methodology. It occurs after you've attracted an audience and are ready to convert those visitors into leads for your sales team (namely sales-qualified leads). As you can see in the diagram below, generating leads is a fundamental point in an individual's journey to becoming a delighted customer.
Recently,[when?] there has been a rapid increase in online lead generation: banner and direct response advertising that works off a CPL pricing model. In a pay-per-acquisition (PPA) pricing model, advertisers pay only for qualified leads resulting from those actions, irrespective of the clicks or impressions that went into generating the lead. PPA advertising is playing an active role in online lead generation.
Lead generation is the process of finding people (leads) who’re likely to become your customers immediately or in the future. “Finding” people implies finding information about people, like their name, email ID or organization’s name, all of which you can use to initiate a business relationship with them. You can generate leads organically and/or by spending money, depending on your resources.
Social media is undoubtedly one of the most effective sources for lead generation and the 1.8 billion users of social networks definitely won’t lie, as reported by the 2014 Global Digital Statistics, Stats and Facts. The report also indicated that more than 135 million users of the top social networks were added in 2012, with Facebook jumping to an astounding 1.184 billion active users.
Search Engine Optimization (SEO) is incorporated in the SEM. It is a process that adjusts and changes the content of the website and its architecture such that it is ranked higher in the result pages of the search engines. There are tools available online to make your website or specific web pages search engine optimized. The generation of leads depends a lot on how many people your website can reach and Search Engine Marketing is the best way to achieve that.

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This vast quantity of information also means that customers are no longer as interested in listening to a traditional sales pitch that doesn’t relate directly to their needs and it might even push them away. It is now important for companies to focus on generating new leads by developing a strong internet presence. This is often accomplished using inbound marketing methods that employ techniques like search engine optimisation and content marketing.
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Online lead generation is an Internet marketing term that refers to the generation of prospective consumer interest or inquiry into a business' products or services through the Internet. Leads, also known as contacts, can be generated for a variety of purposes: list building, e-newsletter list acquisition, building out reward programs, loyalty programs or for other member acquisition programs.
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