How Much Should You Pay for Leads? A Guide to Calculating Your Lead Generation Costs

Lead generation is a booming business, and Flexxable's pay-per-lead model has revolutionized the industry. But as more people jump on board, they often find themselves wondering how much they should charge per lead. Is there a way to figure it out, or does it all come down to experience? You don't want to be stuck in a contract for months, only to realize you're making half the profits you could be. The truth is that every industry is different, and there is no one-size-fits-all answer.

That said, we have a simple method for calculating how much to charge. Use it as a general rule and it should point you in the right direction. We used this same method in Flexxable, and so far it hasn't caused us any problems. Remember, this is only a rough figure, but it's a great way to find out how much your services are worth.

So you've already calculated how much to charge per lead. Do you want to know how to sell with confidence? We have a video about that. As well as many others about lead generation. Check out the Flexxable YouTube channel and subscribe. Escape “Retainer Prison” and put an end to nasty text messages, 26% of emails from the Prime Minister demanding that you do MORE work for less money.

To start, let's say you're selling custom logos online with a website that gets 10,000 visitors a month. So let's say you convert 1% of your 10,000 visitors into email subscribers per month. So let's say that of those 100 email leads, 15% are qualified. Now that we've evaluated what you're spending on marketing, let's see how many potential customers you've received thanks to your marketing efforts.

For this example, let's say you've received 10 leads. There are many factors that determine how much you should pay for a potential customer, and they vary depending on your specific business model. There's no one-size-fits-all solution for everything you have to pay for a potential customer, and expectations can differ greatly depending on industries and operating costs. If you're paying for traffic on Facebook or other sources of potential customers, make sure your landing page is optimized for conversions. Before you can calculate the most you can pay for a potential customer, you must calculate the maximum you would pay for a sale. Now that you've calculated how much you would pay for a sale, you need to calculate how much you would pay for a potential customer. Calculating the cost of leads can be tricky but it doesn't have to be overwhelming. With this simple method, you can get an idea of what your services are worth and start selling with confidence.

Randy Vanwie
Randy Vanwie

Avid music maven. Professional beer geek. Evil coffee scholar. Professional bacon fan. Hipster-friendly music geek.

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