Sales Qualified Lead (SQL)
Prospect vetted by sales team as ready for direct sales engagement
Definition
A Sales Qualified Lead (SQL) is a prospective customer that has been researched and vetted by both marketing and the sales team and is deemed ready for the next stage of the sales process. SQLs have moved beyond marketing engagement (MQL) and shown clear buying intent through actions like: requesting pricing information, scheduling a product demo, asking to speak with sales, submitting a detailed inquiry about implementation, or meeting specific qualification criteria (budget, authority, need, timeline—BANT framework). The key difference between MQL and SQL: MQLs are marketing's assessment of lead quality based on engagement scores; SQLs are sales' confirmation that the lead meets criteria and is worth direct sales effort. Converting MQLs to SQLs typically requires human qualification—a sales rep or BDR contacts the MQL to verify fit and intent. SQL-to-Opportunity conversion rates typically range from 25-40%.
Real-World Example
Marketing generates 400 MQLs monthly through content downloads and webinar attendance. Sales team calls these leads and qualifies them using BANT criteria (Budget >$50K annually, Authority = decision-maker or influencer, Need = clear pain point product solves, Timeline = purchase within 6 months). Of 400 MQLs, 120 meet SQL criteria (30% MQL-to-SQL rate). These 120 SQLs enter active sales pipeline, with 42 becoming Opportunities (35% SQL-to-Opp rate) and 12 closing as customers (10% SQL-to-Customer rate). By focusing sales effort only on qualified SQLs vs. calling all leads, sales productivity increases 3x.
Related Terms
Marketing Qualified Lead (MQL)
CRM & SalesProspect deemed more likely to become a customer based on engagement with marketing
Lead Scoring
CRM & SalesSystem assigning numerical values to leads based on their likelihood to convert
Lead Nurturing
CRM & SalesProcess of building relationships with prospects through targeted, valuable communications
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