What is a product qualified lead (PQL)?

Definition

A product qualified lead (PQL) is a person or company that has used your product, usually on a free trial or free plan, in a way that shows they are likely to pay. The signal is behaviour inside the product, such as inviting teammates or hitting a usage limit, rather than downloads or form fills.

Also called PQL · 3 min read

Why it matters when you sell B2B

For products people can try before they buy, usage says more than any form. Someone who has invited five colleagues has already decided the tool is useful.

PQLs let a small sales team spend time only on the trials that are going somewhere. They often replace the marketing qualified lead for self-serve products, and feed lead scoring.

A worked example

Say you run a free plan for a project management tool. Which actions mark a PQL?

Usage that marks a PQLExample

01Invited three or more teammates. The tool is spreading inside the company.Strong
02Connected a second tool. They are building it into how they work.Strong
03Hit the free plan's project limit. They have outgrown the free plan.Strong
04Read the pricing page. Interest, not usage.Intent only
05Logged in once and left. No sign of value yet.Not a PQL

An invented example. Usage beats interest.

Pick the actions that, in your own data, came before paid upgrades. Do not guess. Then add company fit: a student hitting the limit is not the same as a 200-person company doing it.

The formula

PQL conversion rate = PQLs that become paying ÷ all PQLs

If 40 of 200 PQLs upgraded last quarter, the rate is 20%. Compare it with your other lead sources.

Common mistakes

1Choosing actions that feel important. Pick the actions that came before paying in your data, not the ones the team likes.
2Too many rules. Two or three clear actions beat a dozen weighted ones nobody understands.
3Calling too early. Reach out after the user has seen value, not on day one of the trial.
4Ignoring company fit. Usage from someone you cannot sell to is not a lead.
5Hiding why you got in touch. Say what you noticed, in plain words, and offer help with it.

Define your PQL from real upgrades

List customers who upgraded last quarter.
Look at what each did in their first weeks.
Find the two or three actions most of them share.
Set the PQL rule, and add a company fit check.
Review the conversion rate every month.