How do you use Contacts differently from Leads?

How do you use Contacts differently from Leads?

We have been using Tasks/Potentials/Calls/Events for Contacts and am wondering how you use Leads differently.  Any experience and practical differences would be most appreciated!  Also, what do you do if a Potential isn't necessarily attached to a specific Company (it requires that you have something in that field)?  
Thanks for your advice.