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Why It’s Important To Calculate “Cost Per Lead”

In the article How To Calculate Cost Per Lead, we talk about the specifics for calculating a cost per lead for your various marketing or lead generation sources. That being said, we don’t really go into the “Why”.

There are two reasons it is important to calculate cost per lead.

First off, there is understanding.

Too often real estate agents spend money on marketing and they don’t truly know what they get back in return. Calculating cost per lead means you are tracking where your leads are coming from and how much they cost. This simple understanding of your business puts you ahead of 80& of Agents.

The second reason has to do with careful decision making.

Once you understand cost per lead you can then take that number (in combination with a few other things like conversion rate) and calculate things like expected return on investment and how much to spend on marketing.

Updated on November 29, 2018

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