SQL (Sales Qualified Lead)

What is an SQL?

A Sales Qualified Lead (SQL) is a prospect that has been thoroughly vetted and determined to be ready for active sales engagement. They've passed initial qualification and merit dedicated sales resources.

Unlike an MQL (marketing-qualified) which shows interest, an SQL has confirmed fit, need, and buying intent. They meet specific criteria that indicate a real opportunity to close.

SQL is a critical handoff point - it's when a lead moves from "potential" to "worth pursuing actively."

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Why SQL Matters

The SQL stage is where the rubber meets the road for revenue generation:

Quality Control:

• Ensures sales spends time on real opportunities
• Filters out tire-kickers and bad fits
• Focuses expensive sales resources appropriately

Forecasting Accuracy:

• SQLs are the foundation of pipeline forecasting
• More predictable than broader lead metrics
• Indicates real revenue potential

Marketing ROI:

• Shows which campaigns produce real opportunities
• Measures true lead quality, not just activity
• Aligns marketing spend with revenue

Sales Efficiency:

• Reps know which leads to prioritize
• Less time wasted on unqualified prospects
• Higher close rates on engaged opportunities

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SQL Qualification Criteria

BANT Framework (Classic):

Budget:

• Can they afford your solution?
• Is budget allocated or available?
• What's their spending range?

Authority:

• Are they the decision maker?
• Can they approve or influence purchase?
• Who else needs to be involved?

Need:

• Do they have the problem you solve?
• Is the need urgent or optional?
• What happens if they don't solve it?

Timeline:

• When are they looking to implement?
• Is there urgency or deadline?
• What's driving their timing?

Modern SQL criteria often include:

• Technical fit (compatibility, requirements)
• Strategic alignment (company goals)
• Stakeholder landscape (who's involved)
• Competitive context (what else they're considering)

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SQL vs MQL vs SAL

Understanding the lead journey:

MQL (Marketing Qualified Lead):

• Shows interest through behavior
• Fits demographic/firmographic criteria
• Marketing's assessment of potential
• Not yet vetted by sales

SAL (Sales Accepted Lead):

• Sales has reviewed and will pursue
• Initial handoff complete
• Not yet fully qualified

SQL (Sales Qualified Lead):

• Sales has actively qualified the opportunity
• Confirmed fit, need, timeline
• Ready for active selling and deal progression

The progression filters from broad interest (MQL) to confirmed opportunity (SQL).

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Benchmarks

Lead to SQL Conversion:

• B2B overall: 15-25%
• Inbound leads: 20-30%
• Outbound leads: 10-20%
• Referral leads: 30-50%

SQL to Close Rate:

• Average: 15-25%
• Top performers: 30-40%
• Enterprise: 10-20%
• SMB/Transactional: 25-40%

Time to SQL Qualification:

• Should happen within 1 week of handoff
• Best practice: Qualify in first or second call
• Dragged out qualification kills conversion

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Best Practices

1. Clear Criteria Definition
- Document exactly what makes an SQL
- Train all reps on qualification standards
- Make criteria objective and measurable

2. Rapid Qualification
- Qualify early in the first conversation
- Don't drag out uncertain opportunities
- Disqualify quickly to save time

3. CRM Documentation
- Record qualification criteria met
- Note why SQL status was granted
- Track from MQL to SQL conversion

4. Feedback to Marketing
- Tell marketing what's working
- Share why leads don't qualify
- Align on ideal lead characteristics

5. Regular Review
- Analyze SQL conversion rates
- Review quality of SQLs becoming deals
- Adjust criteria based on data

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Common Mistakes

• Loose standards - Calling everything an SQL to show activity
• Over-qualification - Requiring perfect fit, missing good opportunities
• Slow process - Taking too long to qualify, losing momentum
• No feedback - Not telling marketing what's actually working
• Ignoring context - Not considering deal size or strategic value

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Key Takeaways

• An SQL is a vetted prospect ready for active sales pursuit
• Use BANT or similar framework to qualify consistently
• Lead to SQL conversion: 15-25% typical, higher for inbound
• Qualify rapidly and disqualify when fit isn't there
• Document criteria thoroughly and train all reps
• Provide feedback to marketing to improve lead quality
• Review SQL metrics monthly and adjust as needed