Cost Per Lead (CPL) isn’t a one-size-fits-all deal!
It could be anything from a mere dollar to several hundred dollars for each lead.
And, like the weather, it can change based on outside factors like the time of year or how much it costs to advertise.
And it can vary depending on the type of business, industry, and niche.
Here’s the TRUTH: A cheap lead is not always a quality lead.
Sure, the CPL is super important to keep an eye on and improve, but the more important metric is how much your business can MAKE from each lead.
First things first – you gotta give your LCTR (Link Click-Through-Rate) and CR (Conversion Rate) some TLC to score the lowest possible CPL for your ads.
If your LCTR is over 1% and the Conversion Rate of people who click the link and turn into leads is on point (as in, meeting industry standards for the action you want), then you know your ads are crushing it.
Next up, determine your EPL (Earnings Per Lead)! Calculate the magic number by dividing the total revenue your business made during a specific period by the number of leads you got.
Here’s the important part: A CPL is deemed a success when it’s LOWER than the EPL.
Check out this example: If the CPL is $50 and the EPL is $500, your business is pocketing a profit of $450 per lead.
As long as the other metrics are hitting the mark, keep advertising, no matter how your CPL stacks up against everyone else.
A CPL of $50 may sound unreasonably high to some. But it’s not about comparing yourself to others.
It’s about what’s right for YOUR business.