Calculate Your Cost Per Lead: Knowing your cost per lead is important because it helps set your sales goals and advertising budget. You can calculate your Cost Per Lead by dividing your Marketing Spend by the total number of New Leads.
Example: A law firm closed 10 cases for a total of $150,000 in profits within a month. You had 40 leads come in. You spent $10,000 on a lead generation company. Dividing $10,000 by 40 leads generated we get a cost of $250 per lead. If you subtract the cost of leads $10,000 from the monthly revenue. You make a profit of $140,000 for a small investment of $10,000.
What is Cost per Lead (CPL) vs Cost per Acquisition (CPA)?
Cost per lead (or CPL) is the total cost of generating one lead. This is in contrast to cost per acquisition (CPA) which is the total cost of generating one paying new customer or closed deal.
So what “costs” does a business usually incur from generating leads? Generally they are:
- Advertising costs
- Inbound marketing costs
- Other marketing costs
But most CPL calculators and formulas only think about advertising costs. Doing that underestimates your true CPL because in reality, for most businesses, there are additional costs required to generate a quality lead (for example, building and optimizing landing pages to capture the lead).
It starts with lead generation.
You want an agency that understands generating leads. One that will partner with you to achieve your revenue goals; one that will drive leads not only into the funnel, but all the way through it. And one that understands your need for marketing analytics to document your success.
We’re that lead generation agency.
We aim to enable you to generate more and better leads so that you can grow your company. Sure, we design beautiful websites and write great content – but in the end it’s all about the leads.
Let’s talk about building a lead generation campaign for you Contact Us.