A sales qualified opportunity is a vetted deal that sales has confirmed as a genuine, active opportunity worth forecasting, one step beyond a sales qualified lead. An SQO has a real need, budget, and a path to a decision, which makes it the point where a deal reliably belongs in the forecast.

The SQO is where a deal stops being a maybe and becomes forecastable. The distinction from an SQL matters because forecasting off unvetted opportunities is how founders end up planning against revenue that never arrives. An SQO has cleared the checks: real need, real budget, real decision path. Only then does it deserve a place in the number you plan around.

Example:

A vetted deal with confirmed need, budget, and an identified decision-maker is an SQO. A promising conversation that has not cleared those checks is not.

How is an SQO different from an SQL?

An SQL is a lead sales accepts as worth pursuing. An SQO is a vetted, active deal with confirmed need, budget, and a decision path, ready to forecast.

Why does the SQO stage matter for forecasting?

Forecasting off vetted opportunities produces a realistic number. Counting unvetted opportunities inflates the forecast with deals that were never real.