CPL sticks to the financial reality and works to clear out such assumptions. Cost per lead example Suppose a business invests $2000 into a Facebook Ads campaign that generates 100 qualified leads. uk business email database free Dividing the campaign expenditure by the lead total ($2000/100) returns a modest CPL of $20. Is that cost per lead average, good, or bad? The truth is that it’s entirely context-dependent, as we’ll see in the following sections.

What is a good cost per lead? Put simply, a good cost per lead for a given business is a sum that sits comfortably below what that business can expect to make from an average lead. If a business makes $500 from an average customer and converts 10% of its leads, then a $50 CPL will be its break-even point. Anything below that will be profitable. What is a bad cost per lead? A bad cost per lead surpasses the expected revenue of an average lead, thus leading to net losses that stack up the more sales are made.