TL;DR:
A Sales Qualified Lead (SQL) is a lead that has been vetted by both marketing and sales, and is deemed ready for direct sales engagement. SQLs have a clear intent to buy and meet the qualification criteria required to enter the sales pipeline.
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What is a Sales Qualified Lead?

An SQL is a lead that has progressed past the Marketing Qualified Lead (MQL) stage and has been further validated by the sales team. This validation often follows an initial discovery process that confirms the lead’s fit, need, urgency and purchase readiness.

Sales qualification frameworks such as BANT (Budget, Authority, Need, Timing) or MEDDIC (Metrics, Economic buyer, Decision criteria, Decision process, Identify pain, Champion) are often used at this stage to assess whether the lead is worth pursuing.

SQLs are typically generated when:

  • A sales development rep (SDR) confirms interest via outreach or meeting
  • The lead requests a demo or pricing conversation
  • Qualification criteria (like budget and buying timeline) are met

Why SQLs Matter to Revenue Teams

SQLs directly impact pipeline generation. Since they are the first true entry point into active sales pursuit, they represent near-term revenue opportunities.

By maintaining a clear distinction between MQLs and SQLs, organizations can:

  • Avoid wasted sales effort on leads not ready to convert
  • Improve forecasting accuracy by tying pipeline to verified lead quality
  • Align sales and marketing around shared definitions of success

A healthy volume and conversion rate of SQLs is a key leading indicator for predictable revenue.

Criteria and Pitfalls in Defining SQLs

Sales Qualification

Sales teams should apply a consistent qualification framework to assess:

  • Pain points that align with your solution
  • Authority of the buyer to make decisions
  • Budget and timeline for purchase

Over-qualifying or Under-qualifying

  • Over-qualifying can shrink pipeline too early and ignore good-fit leads
  • Under-qualifying floods sales with noise and reduces close rates

Alignment with Marketing

The handoff between marketing and sales is critical. Marketing should deliver leads that are ready for qualification, not just those who interacted heavily.

CRM and Data Hygiene

Clear lead statuses, timestamps and qualification notes should be tracked to avoid dropped or recycled leads. This also enables accurate performance measurement.