A Product Qualified Lead (PQL) is a free user who has taken specific actions in your product that signal they're ready to buy, or close to it.
Unlike an MQL (Marketing Qualified Lead), who showed interest by downloading content or attending a webinar, a PQL showed interest by using the product. They've already experienced value and are now hitting limits that only a paid plan can solve.
The conversion difference is real. PQLs typically convert at 25-30%. MQLs hover around 5-10%. The gap exists because PQLs already know what the product does. There's no education phase. The sales conversation starts from a completely different place.
PQL signals vary by product. A free user who invited three teammates, hit the usage limit three times in a week, or visited pricing twice before returning to the core feature, these are all potential signals. You define them based on what your data shows happens before users upgrade.
PQLs let product-led companies run leaner sales teams. Instead of cold outreach, sales talks only to people who've already sold themselves. Check your feedback boards for signals from active free users showing what's missing between free and paid.