SQL (Sales Qualified Lead)
💡TL;DR
SQL = lead confirmed by sales as a real opportunity. Qualification frameworks: BANT (Budget, Authority, Need, Timeline), MEDDIC (Metrics, Economic Buyer, Decision Criteria, Decision Process, Identify Pain, Champion), or GPCTBA/C&I. SQL→Opportunity conversion should be >60%. Track SQL velocity (time from MQL to SQL) and acceptance rate (SQLs accepted vs. rejected by sales).
Definition
A lead that sales has accepted and confirmed as worth pursuing through direct qualification. SQLs have passed BANT or similar criteria (Budget, Authority, Need, Timeline) during a conversation. SQLs enter the active pipeline as opportunities.
🏢What This Means for SMB Teams
For SMB sales, use simplified qualification: Does the prospect have budget? Can they make the decision? Do they have the problem we solve? Is there urgency? If 3 of 4 are yes, it's an SQL.
Connect marketing signals to sales actions. Zero handoff friction.
Marketing generates intent, sales captures revenue—in sync.
📋Practical Example
A 25-person sales enablement SaaS was creating 100 SQLs/month but only 35% became opportunities. Reps were over-qualifying weak leads to hit SQL targets. They implemented: (1) mandatory BANT recording in CRM, (2) SQL spot-check audits by managers, (3) incentives tied to opportunity creation, not SQL count. After 60 days, SQL volume dropped to 65/month but opportunity conversion rose to 72%, and pipeline quality improved significantly.
🔧Implementation Steps
- 1
Define SQL criteria using BANT, MEDDIC, or custom framework.
- 2
Require sales to document qualification answers in CRM before marking SQL.
- 3
Set up automated handoff from SDR to AE when SQL is confirmed.
- 4
Track SQL→Opportunity conversion; investigate if below 60%.
- 5
Review rejected SQLs monthly to calibrate marketing's MQL criteria.
❓Frequently Asked Questions
Who decides if a lead becomes an SQL?
Sales (typically SDRs for initial qualification, AEs for complex deals). Marketing provides MQLs, but sales must confirm qualification before it becomes SQL. This creates accountability and prevents pipeline inflation.
What if sales rejects too many MQLs?
Analyze rejection reasons: if "not ready to buy" is common, add timing signals to MQL criteria. If "wrong ICP," tighten demographic filters. Regular marketing-sales alignment meetings help calibrate expectations.
⚡How Optifai Uses This
Optifai tracks qualification status as leads progress through the funnel. When sales confirms SQL criteria, the system automatically updates scoring and triggers appropriate nurture or sales sequences.
📚References
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Related Terms
MQL (Marketing Qualified Lead)
A lead that has shown enough engagement with marketing content to be considered sales-ready based on predefined criteria. MQLs typically meet demographic fit (ICP match) and behavioral thresholds (downloads, page views, email engagement). Marketing hands MQLs to sales for follow-up.
Lead Scoring
A methodology for ranking prospects based on their perceived value to the organization, using demographic/firmographic attributes and behavioral signals to prioritize sales outreach.
Sales Funnel
A visual representation of the customer journey from initial awareness through purchase, divided into stages (typically: Awareness, Interest, Decision, Action) that help sales teams track and optimize conversion at each step.
Pipeline Management
The process of tracking and managing sales opportunities as they move through stages, including forecasting, prioritization, and identifying at-risk deals.