What is Sales Qualified Lead (SQL)?
A sales qualified lead (SQL) is a prospective customer that has been researched and vetted by marketing and/or SDRs and meets the criteria to be pursued by an account executive.
An SQL has progressed beyond initial interest (MQL stage) and meets qualification criteria like budget, authority, need, and timeline. The handoff from marketing/SDR to AE at the SQL stage is one of the most critical transitions in the revenue funnel.
MQL vs SQL
An MQL (marketing qualified lead) has shown interest through actions like downloading content or attending a webinar. An SQL has been validated — typically through an SDR conversation — as having genuine buying intent, budget, and decision-making authority. The conversion rate from MQL to SQL is typically 15-30% for well-qualified pipelines.
SQL Definition Best Practices
The #1 source of sales-marketing friction is disagreement on what counts as an SQL. Effective CROs establish a Service Level Agreement (SLA) with clear criteria: minimum company size, confirmed budget range, decision timeline, and identified stakeholders. This prevents marketing from passing unqualified leads and sales from rejecting good ones.
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