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TG3 SaaS/Glossary/SQL
SaaS metrics glossary

Sales qualified lead (SQL).

The moment marketing hands off and sales takes ownership. Here is what a sales qualified lead is and why the acceptance step matters more than the label.

Definition
A sales qualified lead (SQL) is a marketing qualified lead that sales has reviewed and accepted as genuinely worth pursuing.

The handoff is the whole point. Marketing nominates an MQL, sales accepts or rejects it and an accepted lead becomes an SQL. That acceptance step is what keeps marketing honest and stops bad leads being counted as wins.

How an SQL is defined

How a sales qualified lead is defined.

MQL  +  sales accepts it  =  SQL
MQLa lead marketing judged worth sales time
Sales acceptsa rep reviews it against agreed criteria and commits to working it

The definition lives in the acceptance criteria sales agrees to. Get that wrong and the MQL to SQL rate becomes meaningless, see MQL.

Benchmarks

What the MQL to SQL rate tells you.

The share of MQLs that become SQLs is the clearest signal of whether marketing and sales agree. A very low rate means marketing's bar is too loose. A very high rate can mean it is too strict and you are leaving leads on the table.

Like all benchmarks, the absolute number matters less than your trend on a shared definition. Chase agreement between the teams, not a percentage from a blog post.

How to improve it

How to raise your SQL quality.

01

Write acceptance criteria

Define exactly what sales checks before accepting. Vague criteria make the SQL label meaningless.

02

Close the feedback loop

Sales should log why it rejects a lead so marketing can fix the source.

03

Meet on the definition

A monthly MQL-SQL review keeps both teams aligned as the ICP shifts.

04

Track by source

Some channels produce SQLs, others produce noise. Fund the ones that convert.

Common questions

Questions about sales qualified lead.

What is a sales qualified lead?+

An MQL that sales has reviewed and accepted as worth actively pursuing.

What is the difference between an SQL and an MQL?+

An MQL is marketing's nomination. An SQL is sales accepting it. The acceptance step is the difference.

Who decides if a lead is an SQL?+

Sales does, by applying agreed acceptance criteria to the MQLs marketing passes over.

What is a good MQL to SQL conversion rate?+

It varies by motion and ACV. What matters is a stable rate on a definition both teams agreed and a feedback loop when it drifts.

Marketing qualified leadLead scoringPipeline coverage ratioRebuild attribution

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