As users work a lead, in the 'Lead Pipeline', they will change the state of the lead depending on the result of interactions with the lead. For example if a sales appointment results in a successful sale a lead may move from a lead state called 'sales appointment' to a state called 'sold'. There must be at least one state that closes a lead. (e.g. a state named 'dead' may close a lead if a lead has made it clear they do not want to pursue any further business.)

a. To Create Lead States, click on the 'Lead State' tab at the top of the workflow screen.

b. Select 'Add A New Lead State'

c. Some useful ways to name your lead state may be to reflect the Users who will work with leads in this state.
 (e.g. 'QC' for the Quality Control dept.) or reflect a categorization of the lead in it's life cycle. (e.g. 'Sold-Confirmed' for leads which have signed an agreement to purchase a product.)

d. The check-boxes below the State name offer additional categorization of the State.

e. 'Closes Lead' - indicates that any lead that is in this state will no longer show up in the 'Lead Pipeline' (because it should no longer be worked).
- Both leads that have been 'sold' and will transition into a 'Deal' and leads that are dead ends, should fall into this category.

f. 'Is Active' - If there is a lead state that you do not currently wish to use, but feel that you may use it in the future, you may uncheck the 'Is Active' box and this lead state will be saved, but will not be displayed as an option when configuring your 'Workflow Groups'.

g. Once you have saved your lead states, go back to the Basic Information tab and select the state that you would like new leads to start in.