Warm leads are potential customers who have shown interest in a product or service but have not yet made a purchase. They may have engaged with a business through actions like signing up for a newsletter, downloading a free resource, or attending a webinar. This indicates that they are more likely to convert into paying customers compared to cold leads. Businesses often prioritize warm leads because they require less effort to nurture. By providing targeted information and personalized communication, companies can guide these leads through the sales funnel, ultimately increasing the chances of a successful sale.