Lead qualification is the process of evaluating whether a prospect is a good fit for a product or service based on their needs, interest level, buying power, and likelihood to convert.

It helps salespeople prioritize high-quality leads, avoid wasted time, and focus on opportunities with real potential.

Qualified leads are typically categorized as:

• Marketing qualified leads (MQLs): Prospects who’ve shown interest (e.g., downloaded a resource, signed up for a webinar), but aren’t ready to talk to sales yet.
• Sales qualified leads (SQLs): Prospects vetted by marketing and deemed ready for direct sales engagement based on specific criteria.

Sales teams often use frameworks like BANT (Budget, Authority, Need, Timeline) or CHAMP (Challenges, Authority, Money, Prioritization) to guide qualification.