A Sales Qualified Lead (SQL) is a prospect that has been assessed and confirmed as a genuine opportunity worth pursuing — one that meets a defined set of qualification criteria and warrants investment of the sales team's time. The SQL designation marks the transition from marketing-owned (awareness and interest) to sales-owned (active qualification and progression).
Most SQL definitions are based on activity signals (opened three emails, visited pricing page, filled in a form) rather than fit and intent signals. An activity-based SQL inflates pipeline with prospects who are curious but not buying. A well-defined SQL includes: ICP fit confirmed, a specific business problem identified, a budget or mandate to solve it, and a clear next step agreed. That definition creates less pipeline volume but higher win rates and shorter cycles.
An MQL (Marketing Qualified Lead) meets criteria set by marketing — usually based on behaviour, demographics, or lead score. An SQL is validated by the sales team. The handoff between the two is one of the most common sources of pipeline friction: marketing passes leads that don't convert, sales ignores leads it didn't ask for, and neither function has a shared definition. Aligning on SQL criteria is one of the first things a RevOps function should do.
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