Determine the Value of Your Leads | WebbyUp Digital Marketing | Fort Lauderdale - Miami

Determining The Value of Your Leads

HOW MUCH SHOULD YOU SPEND TO GAIN A NEW LEAD?

There is one question that you’re probably asking that is costing you lots of money and business. That question is, “how do I get cheaper leads?”

In reality cost doesn’t matter.

Of course you don’t want to waste money, but cost is not the metric that matters.

Understanding the value of a lead is what matters.

Let’s dive into exactly what that means…

HOW TO CALCULATE THE VALUE OF A LEAD.

Let’s assume you have a $200 product and it converts at 4% through your normal process of generating customers. That means every 100 leads are worth $800 (4% of 100 = 4 x $200 product).

So, for each SINGLE lead, you’re making $8.

By understanding that each new lead is worth $8, you can spend up to $4 to acquire a new lead and double your money.

(Fortunately, you don’t have to worry about all the math. Just download our FREE Lead Value Calculator Tool here.)

Understanding lead value over lead cost changes the dynamic completely. If you know you’re earning $8 per lead, you’re no longer asking, “how do I get $1 leads?” Instead, you’re asking, “how do I get as many leads as possible that cost $4 or less?”

Focusing on the cost of a lead instead of the value of a lead may save pennies, but will lose dollars.

Once you have your lead value, you should no longer focus on trying to get cheap leads. Because the guesswork on whether an ad is effectively working or not has been removed. The decision is trackable and it becomes binary.

Is this ad working? Simply check if it COSTS more than it MAKES. In other words, is your LEAD COST higher than your LEAD VALUE?

WHAT IF YOU DON’T KNOW YOUR LEAD CONVERSION RATE?

Some new or smaller businesses don’t know their lead conversion rate and that’s ok. Simply use the industry standard of 3% until you can collect more data. But start collecting data right away so you can better understand your lead value.

Download The Ultimate
Lead Value Calculating Tool (Free)

Take the guess work out of knowing how much you should pay to acquire new leads!
Use this plug and play tool to calculate your lead values and change your advertising strategies forever
  • NO MATH is required from you
  • ​Calculate the value of each lead you acquire
  • Get results in real time
  • Use It Again and Again (this tool is yours and will work forever).
DOWNLOAD
Developed to help you gain more leads for the lowest price necessary.