Sales qualified lead
ess-kyoo-EL (not the database language)
A lead that a salesperson has vetted and confirmed has real buying intent, budget, and authority.
An SQL is a lead that a real salesperson has talked to and verified. They have a problem your product solves. They have budget. They have a timeline. They have authority or access to the person who does. It is the difference between someone who is browsing and someone who is buying.
The BDR or SDR does the first qualification. They talk to the MQL, ask discovery questions, and determine whether this is worth an account executive's time. If yes, it becomes an SQL and enters the pipeline as an opportunity.
SQL volume and conversion rate are the most reliable leading indicators of future revenue. If SQL volume drops this quarter, revenue drops next quarter. No amount of end-of-quarter deal acceleration fixes a pipeline generation problem.
Examples
A BDR qualifies an inbound lead.
The lead is a VP of Engineering at a Series C company. The BDR learns they are evaluating three vendors, have a $200k budget approved, and want to make a decision within 60 days. This is an SQL.
A lead looks good on paper but fails qualification.
A director at a Fortune 500 company downloads your whitepaper. The BDR calls and learns they are doing early research with no budget, no timeline, and no authority. This stays an MQL and goes into a nurture sequence.
Sales leadership reviews pipeline health.
The CRO sees 40 new SQLs this month versus 60 last month. At a 25% close rate, that projects to 10 deals instead of 15. She tells marketing to increase MQL volume and reviews BDR qualification criteria.
In practice
Read more on the blog
Frequently asked questions
Who decides when a lead becomes an SQL?
The salesperson (usually a BDR or SDR) decides after direct conversation with the lead. Marketing can score and route leads, but only a salesperson can confirm real buying intent through human interaction.
What is a good SQL-to-close rate?
Between 20% and 30% is typical for B2B SaaS. Enterprise deals with longer cycles may close at 15-25%. PLG-assisted deals with product usage signals may close at 30-40%.
Related terms
A lead that marketing has scored and deemed ready for sales follow-up based on fit and engagement signals.
A person or company that has shown interest in your product. The starting point of every sales pipeline.
The total dollar value of deals your sales team is actively working. The most important leading indicator in any sales organization.
The salesperson who owns the deal from qualified opportunity to signed contract. Carries a quota and earns commission on closed revenue.
Business development rep / Sales development rep. The people who prospect, qualify leads, and book meetings for account executives.
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