What's the difference between a contact, a client, and a prospect?

Contact is the umbrella record. Every contact is one of three types:

• *Household* — A family or individual — primary member, spouse, kids
• *Organization* — A company or other entity — owners, partners, employees
• *Center of Influence* — A professional who refers you business — CPA, attorney, alliance partner

Client and prospect are not separate record types — they are the Status on a contact. Statuses are Active, Prospect, Paused, Closed, Lost and Past.