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What is a sales qualified lead (SQL)?

Definition

A sales qualified lead (SQL) is a prospect that a salesperson has spoken to and judged worth pursuing as a real opportunity: they fit, they have a problem you solve, and there is a path to a purchase. It usually follows a first call, and it is where pipeline forecasting starts.

Also called SQL · 3 min read

Why it matters when you sell B2B

The SQL is where marketing's numbers meet sales' numbers. Everything before it is a guess about interest. Everything after it is a forecast someone will be held to.

Qualification methods like BANT and MEDDPICC are how reps make the call. The most important question is usually who the economic buyer is.

A worked example

Say a rep has a first call with a lead. Here is what decides whether it becomes an SQL.

Five checks after a first callExample

  • 01Fit. Matches the ideal customer profile.Yes
  • 02Problem. Described a problem you solve, in their own words.Yes
  • 03Owner. The person on the call owns that problem.Yes
  • 04Timing. Wants it fixed within six months.Yes
  • 05Budget. Not discussed yet.Open
An invented example. Four of five is enough to call it, with the gap as the next question.

Four clear answers make this an SQL. The open one, budget, becomes the first question on the next call. Writing the evidence next to each check is what lets a manager trust the forecast.

Common mistakes

  • 1Promoting after a friendly chat. A pleasant call with no named problem is not an opportunity.
  • 2Rules nobody wrote down. If the criteria live in each rep's head, every rep has a different bar.
  • 3Skipping the signer question. An SQL with no idea who approves the money is the most likely to stall.
  • 4Inflating SQLs to hit targets. An SQL count that never turns into deals hides problems for a quarter, then shows them all at once.
  • 5Never moving one back. If a deal goes quiet for weeks, return it to nurture instead of leaving it in the forecast.

Keep SQLs honest

  1. Write the SQL criteria down.
  2. Use the same criteria on every first call.
  3. Record the evidence for each one.
  4. Review ten random SQLs a month.
  5. Move stalled ones back to nurture.

Related terms

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