Also called opt-in offer, freebie
A lead magnet is something valuable given away free in exchange for an email address, used to convert an anonymous visitor into a contactable one.
The exchange has to feel fair from the visitor's side. An email address is a real cost — it invites future contact — so the thing offered has to be worth that, immediately and obviously. Vague offers like "join my newsletter" ask for the cost without naming the benefit.
The best lead magnets solve a narrow problem completely rather than a broad one partially. A one-page checklist that finishes a task outperforms a fifty-page guide that starts one, because the visitor can judge its value before deciding.
Relevance to what you eventually sell matters more than volume. A lead magnet that attracts people who will never buy inflates the list and depresses every rate measured against it.
In practice
A wedding photographer offering a two-page shot list collects addresses from engaged couples; the same photographer offering "photography tips" collects addresses from other photographers.
Common mistake
Optimising for sign-up volume. A large list of people uninterested in the product hurts deliverability and hides the real numbers.
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