What is a good cost per lead? Put simply, a good cost per
Posted: Sat Dec 28, 2024 6:44 am
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. 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.
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 $50egypt email list 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.
The expected revenue of an average lead will depend on how much the average customer spends and the rate at which leads result in conversions. What is the average cost per lead? There’s such a thing as a cost per lead industry average. For instance, B2C ecommerce retailers might want to keep their CPL under $100, while a figure closer to $500 might be a more appropriate cap for a fintech business.
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 $50egypt email list 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.
The expected revenue of an average lead will depend on how much the average customer spends and the rate at which leads result in conversions. What is the average cost per lead? There’s such a thing as a cost per lead industry average. For instance, B2C ecommerce retailers might want to keep their CPL under $100, while a figure closer to $500 might be a more appropriate cap for a fintech business.