Demand gen (demand generation) is the set of marketing programs that build awareness and convert interest into qualified leads for sales — distinct from brand-only campaigns or pure product-led growth.

How it works

B2B teams blend channels: content and SEO, paid search, LinkedIn ads, webinars, partner co-marketing, and account-based marketing for target logos. Metrics include MQLs, SQLs, cost per lead, and pipeline influenced.

Demand gen hands off to sales development for qualification and to account executives for closing. Alignment on definitions — what counts as qualified — prevents funnel arguments.

Performance marketing emphasizes measurable ROI per dollar; demand gen often includes longer-nurture programs whose payback spans quarters.

Investors compare demand gen spend to new ARR and CAC payback to see if GTM scales beyond founders’ personal networks.

Product-led growth companies still run demand gen for enterprise tiers or geographic expansion even when self-serve handles SMB.

Why it matters

• Founders: Invest in attribution early — know which programs create revenue, not just form fills.
• Investors: Weak demand gen with rising sales headcount signals inefficient GTM. Strong demand gen with poor close rates points to product or sales issues instead.

Common mistake

Confusing vanity traffic with demand gen success. Downloads and webinar registrants matter only if they convert to opportunities with budget and timing.

Related ideas

See also performance marketing, pipeline, CAC payback, and product-led growth.