If the lead is an actual lead that is actually buying and they are not window shopping, then a lead cost should be around 10% of your profit if a sell is made. I have not found any lead company who wants to work on a sales % of closing. Names and phone numbers can be found on the web but that does not make them good leads.
A 'lead' isn't really a good measure. The better measure is CPLS- Cost Per Lead Sold.
My CPLS is pretty high- as is my Client Lifetime Value.
But my clients have been even higher. Worked with one that had a budget of $7000 per Lead Sold. How could they that? The had a Client Lifetime Value of $1M minimum. So it was less than 1%.
Measuring Cost Per Lead is only valuable when you have a refined system that generates quality, capable, prospects. Otherwise, it is only a little glimpse that could be confusing. How?
You can have a low CPL, but other factors may make CPLS too high. Bad leads, unqualified leads, bad conversion systems and poor sales closers can all contribute.
I would rather pay 10X the average to get 1 great lead than chase after 9 cheap ones that are wasting my time.
That's a loaded question, and would depend where you advertise, and how their fees are? Monthly, semi annually, quarterly, or annually, for example, or do you pay a place per ad, per click, or per response to any lead you receive?
Also, it depends on the type of business you have. Some would benefit from some styles of marketing that wouldn't work well for others. You'd also have to consider where, and how far you want to market (nationally, regionally, or locally, for example).
Leads? It depends what type of business we are procuring them for. We work with realtor in California is getting leads for $5 or so a piece. We also work with a life insurance agency and those leads are coming in under $15 a piece.
That all depends how you generating the leads or are you buying leads what platform your advertising to generate the leads to many variables. Your cost affective to generating is knowing your audience and laser target that audience
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If the lead is an actual lead that is actually buying and they are not window shopping, then a lead cost should be around 10% of your profit if a sell is made. I have not found any lead company who wants to work on a sales % of closing. Names and phone numbers can be found on the web but that does not make them good leads.
A 'lead' isn't really a good measure. The better measure is CPLS- Cost Per Lead Sold.
My CPLS is pretty high- as is my Client Lifetime Value.
But my clients have been even higher. Worked with one that had a budget of $7000 per Lead Sold. How could they that? The had a Client Lifetime Value of $1M minimum. So it was less than 1%.
Measuring Cost Per Lead is only valuable when you have a refined system that generates quality, capable, prospects. Otherwise, it is only a little glimpse that could be confusing. How?
You can have a low CPL, but other factors may make CPLS too high. Bad leads, unqualified leads, bad conversion systems and poor sales closers can all contribute.
I would rather pay 10X the average to get 1 great lead than chase after 9 cheap ones that are wasting my time.
Mark
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That's a loaded question, and would depend where you advertise, and how their fees are? Monthly, semi annually, quarterly, or annually, for example, or do you pay a place per ad, per click, or per response to any lead you receive?
Also, it depends on the type of business you have. Some would benefit from some styles of marketing that wouldn't work well for others. You'd also have to consider where, and how far you want to market (nationally, regionally, or locally, for example).
Leads? It depends what type of business we are procuring them for. We work with realtor in California is getting leads for $5 or so a piece. We also work with a life insurance agency and those leads are coming in under $15 a piece.
That all depends how you generating the leads or are you buying leads what platform your advertising to generate the leads to many variables. Your cost affective to generating is knowing your audience and laser target that audience