Question
I'm stuck in deciding if I should have users "verify their email address" first; which I'm guessing will lead to "lower" signups, but "higher" quality leads.
Or have users NOT verify their email; which would reduce "signup friction" but probably lead to "higher" signups, but "lower" quality leads.
Answer
Do both. Verify but continue to let them use the site in a limited capacity or even better have a message at the top reminding them to verify as they use the site. Keeping the message up will drive the right people to verify and the wrong people to continue to not verify.