Lead Generation
Why cheap leads end up costing you more
A low cost per lead looks great in a report. Here's why it's often the most expensive number in your marketing.
5 min read
Every service business wants cheaper leads. It's the first number most people look at, and the easiest one for an agency to improve. The problem is that cost per lead, on its own, tells you almost nothing about whether your marketing is working.
A $3 lead who never answers the phone is infinitely more expensive than a $30 lead who books a consultation.
Where cheap leads come from
Most cheap leads are created by removing friction. Pre-filled forms, vague offers and one-click submissions make it easy for anyone to become a lead — including people who were just curious, or who tapped the button by accident.
- Instant forms with no qualifying questions
- Offers so broad they appeal to everyone
- Targeting optimised for form fills instead of outcomes
Measure what matters instead
The better question is: what does it cost to get a conversation with a qualified prospect? Then: what does it cost to win a customer? When you track those numbers, decisions get much clearer.
Adding two or three qualifying questions will usually raise your cost per lead. It will also raise the percentage of leads who pick up, book and buy — which is what pays the bills.