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HubSpot glossary

What is a sales qualified lead (SQL) in HubSpot?

A sales qualified lead (SQL) is a contact that sales has reviewed and accepted as a real prospect worth active pursuit. In HubSpot it is a default lifecycle stage that comes after marketing qualified lead and before opportunity.

The SQL stage is where sales takes ownership. A rep has looked at the contact, confirmed there is a plausible need and fit, and committed to working it. HubSpot records the date the contact entered the stage, so you can measure how quickly MQLs are reviewed and how many are accepted.

Who sets the stage matters. MQL is usually set by marketing automation, but SQL should reflect a sales decision. Common patterns are a rep setting it by hand after a first conversation, or a workflow setting it when a rep changes lead status to connected or books a meeting. Either way, the rule should be written down so every rep applies it the same way.

The next step after SQL is usually a deal. When a deal is created and associated with the contact, the contact typically moves to opportunity. If SQLs pile up with no deals, either reps are qualifying too loosely or they are not creating deals in HubSpot, and pipeline reports will understate what sales is working on.

Measure the stage from both sides. Track the share of MQLs that become SQLs, the time it takes, and the share of SQLs that become opportunities. A sharp drop at any point tells you which side of the handoff needs work.

Example

Pinecrest Logistics, a fictional freight broker, found hundreds of SQLs with no deals attached. Reps were setting SQL as soon as they called someone, even with no real opportunity. The sales manager redefined SQL as "a discovery call held and a need confirmed", and SQL to opportunity conversion became a useful number again.

Common mistakes

  • Letting marketing automation set SQL, so the stage no longer reflects a sales decision.
  • Leaving SQLs without a deal for months, so pipeline reports miss real opportunities.
  • Using SQL and lead status interchangeably instead of using each for its own job.
  • Never sending rejected leads back with a reason, so marketing cannot improve the MQL definition.

Related checks

Frequently asked questions

Who should set the SQL lifecycle stage?

Sales, either by hand or through a workflow triggered by a sales action such as a booked meeting or a lead status change. SQL should reflect a sales decision, not marketing activity.

What comes after SQL in HubSpot?

By default, opportunity. A contact usually moves to opportunity when a deal is created for it, and to customer when a deal is closed won.

Related terms

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