What do you convert potentials to?

What do you convert potentials to?

Confusing lifecycle of a deal for Zoho.  It starts off as a Lead, then converts to a Potential, and then what?  You have to create an Account to create a Potential, but if you lose the deal, you still have an Account set up.  Is there not a way to convert a Potential into a Client?  Seems like there should be a Client classification to differentiate the Accounts.  Perhaps I'm missing something?  Please advise.