SQL: definition of a sales-qualified lead

Definition

An SQL (Sales Qualified Lead) is a prospect who has been evaluated and validated by the sales team as representing a real sales opportunity. Unlike an MQL (Marketing Qualified Lead), which indicates marketing interest, a SQL confirms a fit with sales qualification criteria: available budget, decision-making authority, an identified need, and a defined timeline. The SQL marks the official entry into the sales pipeline and triggers the active sales process led by an Account Executive.

SQL qualification criteria

SQL qualification generally relies on structured frameworks. BANT evaluates Budget, Authority, Need, and Timeline. MEDDIC goes deeper with Metrics, Economic Buyer, Decision Criteria, Decision Process, Identify Pain, and Champion. HubSpot’s GPCTBA/C&I analyzes Goals, Plans, Challenges, Timeline, Budget, Authority, Consequences, and Implications. The choice of framework depends on the complexity of the sales cycle. The key is to validate that the prospect has a real problem, the means to solve it, the authority to decide, and an intention to act within a reasonable timeframe.

Qualification Process

The conversion of an MQL into an SQL follows a defined process. The SDR contacts the lead, usually within 24 hours of its MQL qualification. A discovery call explores the prospect’s needs, challenges and context. BANT criteria or equivalents are assessed through open-ended questions. If the criteria are met, the lead is converted to an SQL and an appointment is scheduled with an Account Executive. If the lead is not ready, it may be returned to marketing for further nurturing or permanently disqualified.

Difference between MQL and SQL

The MQL/SQL distinction reflects progression through the funnel. The MQL is based on behavioral and demographic signals: the prospect matches our target and shows interest. The SQL adds human validation: a conversation has confirmed a real sales opportunity. An MQL may not become an SQL if the need isn’t real, the timing is off, or there’s no budget. The MQL-to-SQL conversion rate measures the quality of marketing qualification. A rate that is too low signals a misalignment between Marketing and Sales on the definition of MQL.

From SQL to Opportunity

Once qualified as an SQL, the prospect enters the pipeline managed by the Account Executive. The AE deepens discovery, maps decision‑makers, understands the buying process, and builds the value proposition. The SQL can progress to a qualified opportunity (with an estimated probability of closing) or be disqualified if conditions change. Rigorous tracking of SQL outcomes (won, lost, disqualified) helps refine qualification criteria and improve pipeline predictability.

SLA and handoff process

Moving a lead from MQL to SQL requires a clear SLA between Marketing, SDRs and Sales. This SLA defines processing timeframes: how long to contact an MQL, to qualify or disqualify it, and to hand it off to the AE. It specifies the information to capture and pass on: qualification notes, objections raised, and decision-making context. It establishes feedback criteria: why an SQL is accepted or rejected by the AE. This formal framework reduces friction, speeds up the cycle, and ensures each lead receives appropriate attention.

Analytics and optimization

The analysis of the MQL→SQL→Opportunity→Won funnel guides continuous optimization. Conversion rates at each stage reveal bottlenecks. Source analysis identifies the channels generating the highest-quality SQLs. The average MQL-to-SQL time measures qualification responsiveness. The SQL win rate assesses the relevance of qualification criteria. These insights enable adjustment of MQL criteria, improvement of SDR qualification scripts, and optimization of sales resource allocation toward higher-potential opportunities.

SQL (Sales Qualified Lead)