CPL · cost per lead
CPL (cost per lead) is the average amount spent to obtain a lead, meaning a sales contact. You get it by dividing the budget by the number of leads generated.
The formula
CPL = Budget spent ÷ Number of leads generated
A concrete example
Example
You spend $1,500 and get 30 leads: your CPL is 1,500 ÷ 30 = $50.
Why it matters
CPL only makes sense next to the value of a customer and your close rate. A $50 CPL is excellent if a customer is worth $3,000, ruinous if they are worth $80. What matters is where it sits against your profitable CPL.
Frequently asked questions
- What is the difference between CPL and CPC?
- CPC is the cost of one click, CPL the cost of one sales contact obtained. A lead often takes several clicks: CPL is therefore higher than CPC, and closer to the sales reality.
- How do you lower your CPL?
- By improving targeting, ad quality and above all the landing page conversion rate. Often, gaining two points of conversion lowers CPL more than switching audiences.