Sales Qualified Lead / Marketing Terms Sales Qualified Lead A sales qualified lead (SQL) is a prospective customer who has been vetted by the sales team and is considered ready for direct outreach. Unlike a marketing qualified lead, who has shown interest through activities such as downloading content or attending a webinar, a sales qualified lead meets specific criteria that indicate a higher likelihood of becoming a paying customer. These leads are prioritised for follow-up and included in the sales pipeline. Qualification typically involves assessing a lead’s fit and intent through frameworks like BANT, which stands for Budget, Authority, Need and Timeline. For example, if a lead books a demo, confirms they have purchasing power and expresses a need for your solution within the next quarter, they may be moved to SQL status. Consistent collaboration between marketing and sales ensures that only well-vetted leads advance, reducing wasted effort and improving conversion rates. For B2B and SaaS companies, identifying sales qualified leads helps sales teams focus their time on contacts with real potential. For nonprofits, a similar approach can apply to major donor prospects, corporate partners or grant funders who have shown strong engagement or funding capacity. Defining SQL criteria clearly, aligning teams and using CRM systems to track progression through the funnel supports a healthier pipeline and more accurate forecasting.