Library > Sales Qualified Lead (SQL)

Sales Qualified Lead (SQL): Definition, Criteria, and Role in the Sales Funnel

Written by Alexandra Flygare, Junior Content Marketing Manager

Last Updated: September 2025

Have you ever wondered why some leads turn into customers while others just seem to vanish into thin air?It all comes down to understanding and identifying your Sales Qualified Leads (SQL).


Let's dive into the essentials of SQL, offering insights into its importance, identification, and strategies for effective management.

TL;DR

  • A Sales Qualified Lead (SQL) is a prospective customer who has been vetted by marketing and sales and is deemed ready for a direct sales conversation because they've shown intent to buy.

  • It represents the next stage after a Marketing Qualified Lead (MQL), which is a lead marketing has identified as promising but who is not yet ready for sales engagement.

  • The goal of defining SQLs is to make the sales team more efficient by focusing their efforts on leads with a high probability of becoming customers, ultimately improving conversion rates.

What is Sales Qualified Lead (SQL)?

A SQL is a prospective customer who has been researched and vetted by both the marketing and sales teams. These customers are deemed ready for the next step in the sales process. 

Data shows that different marketing channels have a vastly different impact on generating these sales-ready leads. Our LinkedIn Ads Benchmarks Report highlights the difference:

  • LinkedIn Ads influence 36% of all SQLs in the B2B journey

  • Google Ads account for 21%

  • Meta Ads drive just 3%

Unlike other leads, SQLs exhibit a higher likelihood of becoming customers due to their demonstrated interest in your product or service and their fit within your target demographic or buyer persona. SQL’s are not just interested in your product or service; they're ready to get down to business.

How to identify a SQL

Identifying an SQL isn't just about seeing who's interacted with your content. It's about noticing who's diving deep - downloading your guides, attending your webinars, and basically doing everything short of waving a flag saying, "I'm interested!" They fit your ideal customer profile to a T and are clearly in the market for what you're offering.

Identifying an SQL involves effective communication between marketing and sales teams to apply these criteria:

  • Engagement Level: SQLs often exhibit high levels of engagement with your marketing content, such as downloading whitepapers, attending webinars, or repeatedly visiting your website.

  • Fit: These leads match your ideal customer profile in terms of industry, company size, budget, and specific needs.

  • Intent: SQLs express a clear intent to purchase or show a keen interest in understanding how your product or service can solve their problems.

Winning strategies for managing your SQLs

So now that you've identified your sales qualified lead, here's how you keep them engaged and move them down the sales funnel:

  • Get Personal: Tailor your approach to meet their specific needs. Show them you understand their challenges and have just the solution they're looking for.

  • Be Swift: Quick follow-ups are your best friend. They keep the interest alive and show that you're attentive and ready to help.

  • Use Your Tools: Leverage CRM software to keep track of your interactions, preferences, and any specific requests or feedback. The more you know, the more personalized and effective your sales pitch can be.

Pro Tip: Track and analyze your market-sourced SQLs with Revenue Marketing.

Why are SQLs important?

Focusing on SQLs streamlines the sales process by allocating resources and attention to leads with the highest conversion potential. The importance of this stage is reflected in modern advertising strategies; data shows that 40% of B2B advertisers using LinkedIn's Conversions API are optimizing their campaigns directly towards generating SQLs, which is more than any other pipeline stage.This targeted approach enhances the efficiency of the sales team, increases the conversion rate, and ultimately boosts the return on investment for marketing and sales activities. 

This means your sales team can direct their energy and resources towards leads that are most likely to become customers, making your sales process as efficient as getting from point A to B with a GPS.

SQLs are the leads that are most likely to become your next happy customers. By understanding what makes an SQL and following through with a tailored, efficient management strategy, you're setting your business up for success.

Conclusion

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FAQs

  1. How do SQLs fit into the broader revenue funnel?

    • SQLs sit at the intersection between marketing and sales. They’re the bridge that ensures marketing’s lead generation efforts translate into revenue by giving sales a vetted, higher-quality pipeline.

  2. What is the difference between an SQL and an Opportunity?

    • While an SQL is ready for a sales conversation, an Opportunity is a stage further: it’s when a sales rep has confirmed the lead’s budget, authority, need, and timeline (BANT). In other words, SQLs are potential customers, while Opportunities are active deals.

  3. Which metrics should teams track to evaluate SQL effectiveness?

    • Useful SQL metrics include:

      • SQL-to-Opportunity conversion rate

      • Average time an SQL spends in pipeline

      • Revenue contribution from SQL-sourced deals

        Tracking these helps align marketing and sales efforts with business outcomes.

  4. What role does technology play in managing SQLs?

    • CRM platforms and attribution tools are essential for tracking SQL activity. They provide visibility into engagement history, ensure smooth handoffs between marketing and sales, and enable performance analysis.

  5. How can SQL definitions evolve as a company scales?

    • Early-stage companies often use simple definitions (e.g., “requested demo”). As the business matures, definitions typically become more sophisticated, incorporating firmographics, engagement scoring, and intent data to ensure accuracy at scale.

Author

Alexandra Flygare is a junior content marketing manager at Dreamdata. Before transitioning to B2B marketing, Alexandra worked as a music journalist, developing her expertise in storytelling and cultural analysis. Her background spans both creative and technical writing, allowing her to bridge the gap between complex technology concepts and accessible content.