As you start importing and adding contacts into the system, you can use System Default Statuses and create a custom Status system.

A Status designates the type of Contact within the system and can work in tandem with Tags, which add a description method. Both can be used in the Contact Filter.

For instance, if it's "Hot" (red), a Contact will likely be someone you are actively moving along your transaction journey from open to close.

"Warm" (orange) may be a Contact that needs more relationship building so you can move them to "Hot" eventually.

There are two places you can click to update a single Contact Record Status:

Contacts "Status" column.
Contact Record "Status" banner.

Click the status for the contact in the Contacts list or on the contact status banner, then click the new Status to apply it.

Status	Color
Hot	Red
Warm	Orange
New	Yellow
Team	Green
Cold	Blue
Trash	Black
Appt Set	Gray
Appt Missed	Gray

Pipeline Owner	Color
Community	Green
Shared (shared with you)	Purple
Team	Blue

Pipeline Library Color Designations