Cost per lead doesn’t tell you the full story
Generating good business leads is the lifeline of a healthy business.
In fact, we don’t really need to explain to business owners the importance of lead generation campaign most of the time.
But the truth is, you need a decent advertising budget to generate good business leads.
Sadly, since many businesses are not equipped to track ROAS (return on ad spent), they are less comfortable spending a sizable budget on advertising as they can’t see the correlation between advertising budget and sales.
With a myopic understanding of their business, many business owners prefer a lower cost per lead so they can generate as many leads as possible based on their limited budget.
Isn’t it reasonable to expect more sales with more leads?
Here is why cost per lead may be over-rated depending how you view them.
Why Cost per Lead is Overrated
- Cost Per Lead Doesn’t Tell You Anything About Lead Quality
- Doesn’t Work Well as a Benchmarking Tool
- Doesn’t Include Hidden Costs