How You Can Achieve A Better Cost Per Lead In 9 Simple Steps

author Morgan Stout
Morgan Stout
  |  October 8, 2021
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A cost per lead (CPL) is the cost of acquiring a new customer or lead. CPLs are usually calculated annually and can vary depending on how much work it takes to close each sale. As a businessman, it is your job to ensure that you are getting the best cost per lead possible. After all, this cost is what you will be paying for any leads that come in through marketing or other means.

Finding ways to improve cost-per-lead can help grow your business and increase profits. Read this blog post that will teach you nine steps to help increase your conversion rates and generate more revenue for your business!

What Is Cost Per Lead (CPL)?

A cost per lead (CPL) is the average price of a lead, which means that it’s the amount you pay for each new customer from your marketing efforts. It can help you determine how effective your marketing campaigns are and if they’re worth continuing or adjusting. 

The CPL is also known as conversion rate because it measures how many leads become actual customers. The lower the number, the more successful your campaign generates leads and converts them into paying customers. 

Doing some research on what other companies in your industry charge for their leads will give you a good idea of what a reasonable CPL should be. Still, there isn’t an exact way to calculate one unless you know exactly where all of your leads come from and how much work it takes to convert them.

What Can Cost Per Lead (CPL) Tell You?

The cost of a customer or lead gives an estimate of the value that each new client brings, so if your CPL is high, then you’re probably spending too much money on marketing efforts for leads that don’t generate a high return. On the other hand, this cost can be an investment in future profits or a drain on your business’ resources, so it’s important to keep CPL low and raise the ROI from each lead.

It is also possible that you have too many middlemen between yourself and potential clients who are inflating prices for leads, but if this cost remains high for a long time, it could indicate other problems. Tracking cost per lead allows you to quickly identify issues with marketing campaigns and take steps to fix them.

How Can Cost-Per-Lead (CPL) Be Improved?

There are several strategies that business owners can try to reduce cost per lead or increase their conversion rates, which will also help them save time and money on marketing. Here are some of the most effective cost per lead-reducing strategies to try:

  1. Increase your social media presence by setting up profiles on all relevant platforms, including Google+, Flickr, and Pinterest. You can also offer promotions or discounts through these channels to promote sales for your business.
  2. Become an active member of online communities that relate to your products or services. Post blog updates and engage with other community members to attract their attention and spread brand awareness for your business.
  3. Make sure that you’re offering content on your blog relevant to what people are searching for online, so they will have a reason to visit it regularly to learn more about your company.
  4. Make sure that your website is mobile-friendly and optimized for viewing on smartphones. This will allow you to attract more potential customers, especially younger generations who are increasingly using their phones to shop online.

These cost-per-lead-reducing strategies can help decrease the cost of leads and increase conversion rates by making it easier (and cheaper) for people interested in your business to contact you.

Where Does Cost Per Lead come From?

Every customer interested in a product or service will go through an average of five stages before they are ready to purchase, which is known as the buying funnel. The cost of each step varies according to how likely it is for people at this point in the process to buy, which is why the cost per lead can vary widely at different stages of the buying funnel.

The first stage of the buying process is known as “awareness,” when potential customers are just learning about your product or service for the first time. If their level of interest in purchasing remains high during this stage and they have no reason to delay a purchase, the cost per lead is usually meager.

The second stage of the buying process is known as “consideration,” when people weigh their options and compare prices before deciding whether or not to buy from you. This cost can vary depending on how intense competition for customers is in your industry at a given time, but it’s usually higher than the cost per lead during the first stage.

The third and fourth stages of the buying process are known as the “decision” stage, when customers have decided to buy from you, but they’re still comparing prices or checking out reviews before making their final purchase. These cost levels vary depending on how intense competition is for this stage, but the cost per lead is usually lower than during the consideration phase.

The final stage of the buying process is known as “delivery,” when customers receive their items and decide whether to make a repeat purchase from your company. This cost can vary depending on how long they expect deliveries to take, which may depend on the cost of shipping and how likely they are to be satisfied with their purchase.

What are Some Cost Per Lead Tips?

An effective cost-per-lead strategy can completely change the amount of money your company makes with every sale, making it easier (and cheaper) for you to grow your customer base by bringing in more potential customers. Here are a few cost-effective cost-per-lead strategies to help you make your cost-per-lead goals a reality.

Take a Look at How Well Your Strategies Are Functioning in Different Locations.

If the cost per lead is higher in a particular area, then your business may lose money if you’re targeting that location. If this is the case, it’s time to re-evaluate where you’re spending marketing dollars and how much attention you’re putting into specific areas.

Examine The Network To See How Well it’s Working.


Instead of checking cost per lead by geographic area, you can also check cost-per-lead performance for specific ad networks or social media platforms. This will allow you to find out which network is most cost-effective and invest more time in that area, instead of wasting money on advertising channels with higher costs per click.

Examine Performance By Device.

Acquiring cost-per-lead cost performance by devices, such as a desktop computer or smartphone, will allow you to see which devices lead to the most conversions and sales. This information can help you decide what kind of advertising copy your business should be using on different sites (e.g., mobile vs. desktop) to help you bring the cost per lead down.

Make Use of Remarketing.

Remarketing cost per lead is a strategy that allows you to market towards people who have already visited your website or used your services but did not convert. Remarketing cost per lead strategies will enable businesses to generate more sales and leads at minimal cost by showing ads for their products and services on different websites across the web.

Automating the Bidding Process Has Several Advantages, Including Fewer Errors and Faster Turnaround Time.

Many cost-per-lead platforms allow you to automate bidding, which means that your cost-per-lead cost can fluctuate according to demand. This is an excellent way of maximizing the number of leads and sales at any given time without paying more than necessary in some circumstances (like when demand is high).

Review the Campaign’s Advertising.

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Many cost-per-lead platforms allow you to conduct an ad review, which means that you can see how your cost-per-lead cost changes over time and make adjustments accordingly. This is an excellent way of ensuring cost-effectiveness without paying for leads or clicks that won’t produce any conversions.

Check into Day-parting.

Cost per lead cost can vary depending on when you are targeting your ads during the day. For example, the cost-per-lead price is generally lower in the evening hours than earlier in the morning or later at night because most people have gone home from work and aren’t using their computers anymore.

Take Some Time to Go Over Your History.

You can also conduct a cost-per-lead historical review showing how your cost per lead cost has changed over time and where it’s gone up or down. This will allow you to make necessary adjustments, maintain cost-effectiveness, and reduce the risk of loss in revenue due to ineffective marketing strategies.

Add Negatives.

Finally, the cost per lead can also increase due to an overwhelming number of people clicking on your ads. You should add negatives that block out certain terms or demographics (like a specific geographic location) to prevent this from happening, so the cost-per-lead cost doesn’t skyrocket if too many irrelevant clicks are coming in.


If you want to reduce cost per lead for your business, try implementing some or all of these strategies into a marketing campaign that will attract more potential customers interested in purchasing from you. Unfortunately, once people have reached the final stage in this process (delivery), the cost per lead will usually be the highest.

Suppose the cost per lead is too high. In that case, it can place your business in financial jeopardy if you’re not bringing any revenue into the company or losing money on every sale made due to costs like shipping fees and customer acquisition efforts. Reduce cost per lead by following these nine simple steps to increase traffic towards your business and attract cost-per-lead consumers.