They can then improve their lead nurturing tactics by investing further in the channels that are performing reliably. They challenge marketing assumptions. Marketers can easily assume that big flashy campaigns are working, especially if they’re getting a lot of attention. Similarly, they can assume that campaigns producing high-quality leads are the best. It’s possible for buzz to have minimal impact and for a broad ad campaign with low-quality leads to offer better ROI through having lower operational costs.
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.