Understanding your cost per lead is important when planning your business.
The very first step to understanding your cost per lead is making sure you know where all of your leads are coming from. We’ll talk more about that in a future article.
To calculate your cost per lead, you simply need to take the total amount of money you’ve spent and divide by the numbers of leads you’ve received.
So if you’ve spent $50 on Facebook Advertising and that advertising generated 10 leads, you would divide $50 by 10 and quickly learn your cost per lead is $5.
Lastly, it’s important to remember that each one of your lead generation sources will have different costs per lead. For example, Facebook advertising will have a different cost per lead than leads generated from a third party Zillow.