In marketing, cost per lead (CPL) is the pricing model where advertisers pay for each lead that they receive. A lead is generally a potential customer who has shown interest in the advertiser’s product or service in some way, such as signing up for a newsletter or filling out a form.
Paying per lead is a way for advertisers to avoid paying for advertising that doesn’t result in a sale, and it’s also a way to track how effective their marketing campaigns are. If an advertiser is paying R10 per lead and they receive 100 leads, that means their marketing campaign has cost them R1,000.
The cost per lead can vary depending on the industry, the product or service, and the methods used to generate leads. For example, lead generation through paid search advertising is generally going to be more expensive than lead generation through organic search traffic.
The cost per lead is also affected by how likely the leads are to convert into customers. If an advertiser is selling a product that has a low conversion rate, they’ll likely have to pay more per lead in order to make up for the lower conversion rate.
Cost per lead is an important metric for advertisers to track, as it can help them to determine whether or not their marketing campaigns are effective and profitable. If the cost per lead is too high, it may be necessary to adjust the campaign in order to lower the cost.