Sales Qualified Lead (SQL)
A Sales Qualified Lead (SQL) is a prospect that a sales rep has personally verified through discovery conversation to meet qualification criteria — confirming product fit, decision authority, budget availability, and timing — and is ready to advance into the active sales pipeline as a working opportunity.
Why This Matters
SQL acceptance is the formal handoff from marketing/SDR to closing reps. The qualification framework varies by sales methodology (BANT, MEDDIC, GPCT, CHAMP) but the function is identical: confirm this prospect can and will buy in a reasonable timeframe. Common SQL criteria: verified company match to ICP, identified decision-maker engaged, expressed need or pain, budget existence confirmed (or budget process navigable), and reasonable evaluation timeframe (typically next 30-180 days). SQL conversion to closed-won is the metric driving sales rep performance evaluation.
Frequently Asked Questions
Frequently Asked Questions
What criteria should an SQL meet?
BANT framework: Budget (funds available), Authority (decision-maker engaged), Need (clear pain/use case), Timeline (defined evaluation window). MEDDIC adds Metrics (quantifiable outcome), Economic Buyer (final approver identified), Decision Criteria (how they'll evaluate), Decision Process (steps to close), Identify Pain (specific problem), Champion (internal advocate).
What's the typical SQL-to-closed-won conversion rate?
B2B SaaS average: 27% SQL-to-closed-won. Top quartile: 40%+. Bottom quartile: 15%. Low conversion typically indicates SQL criteria are too loose (qualifying unfit prospects), pricing/product mismatch with target market, or downstream sales execution gaps.