3 reasons why cost per lead isn't everything
Many of my prospective clients rightly ask, “how much do the leads cost?”
I’m always tempted to give the most frustrating answer possible, “it depends”.
But it’s true.
Facebook/Instagram media buyers can deliver leads at a range of costs. But it’s not the full story.
Here’s some specific reasons why cheap leads aren’t the best leads:
1/ Obviously nasty leads
You can get cheap leads doing a whole range of tricks that aren’t helpful to the business. Two most obvious ones:
Targeting the wrong countries/areas
Non-target languages (incoming communication issues)
Examples:
“Kaw blimey. I’m getting leads for $1!” - But everyone is from India, and you’re targeting Northern Chicago.
Instead:
Consider the range CPL in your industry as a guide
Measure your performance against this
Balance the cost evaluation against conversion rates, a higher CPL but high conversion rate is still excellent 💸
2/ Avoid stingy buyers
Not all buyers are created equal.
Some love discounts, but won’t convert to an on-going arrangement
Some groups of people are just painful to work with
Example:
“Everyone joins my gym for $1 for 1 week!” - Meanwhile, nobody shows up because they don’t care if they lose $1
Instead:
Test multiple offers
Measure the conversion rate to longer-term by offer
Then, focus more on CPLs for quality offers that provide better ROI
3/ Not paying attention
You need to balance attention, so that people understand what they are doing.
Probably filling your form out half-asleep
Won’t remember they filled out the form after 24 hours
Example:
Instead:
Don’t request email only with Instant Forms (What are instant forms? link)
You need to be clear in the ad copy/creative so they know what they’re doing
IMHO: headlines can be too creative, so make it clear
Make sure you call ASAP.
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