Cost Per Lead

Written by Seth Cotterell
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Cost per lead is one of the most common terms in marketing today. This is because cost per lead is one of the most common ways in which a company computes and pays advertising costs. Here is a run down of the basic things to consider when figuring cost per lead.

Cost Per Lead 1, 2, 3

Cost per lead, more commonly referred to by the acronym CPL, is a very common method of tracking marketing expenses. Basically, a company pays its advertising agency for any qualified lead that is brought in. The only tricky part is deciding what exactly qualified as a lead. Does the name of a potential customer count? What about an email address or phone number? Some companies require more extensive information and need entire customer surveys validated before they will pay. It all depends on the nature of the client.

While selling advertising on a CPL basis is standard practice, the amount companies charge is not standard at all. Cost for CPL advertising ranges dramatically across sectors. Depending on the medium and the intensity of the campaign, cost can fluctuate significantly. Discuss these variations with your representative in the initial consultation.

Before launching any marketing campaign, talk to a full service advertising agency to estimate potential cost savings to you. Contracting with one of these companies and paying for their services on a cost per lead basis will most likely save your company money and increase performance.


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