Cost per lead (CPL) is one of the most fundamental marketing metrics, and one of the most misunderstood.
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On the surface, it's simple: if you spend $500 on a campaign and it generates 50 leads, your CPL is $10. But the real question isn't just how much you're paying, it's whether you're paying the *right* amount.

So, what’s a “good” CPL? The answer depends heavily on context:

• What’s your industry?
• What’s your average deal size or customer LTV?
  
• What’s your marketing budget?
  
• How qualified are the leads?

For example, a $100 CPL might be far too high for a product that sells for $500. But for a B2B SaaS product with a $10k ACV, it could be a bargain.

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How to Calculate Cost Per Lead

The formula is straightforward:

Cost Per Lead = Total Campaign Spend / Total Leads Generated

But the analysis of that number is where the real insight lies.

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Channel-Specific Variability

CPL isn't a static number across channels. For instance:

• SEM (e.g. Google Ads): ~$110 (range $38–$181)
  
• LinkedIn Ads often average at $75 (range $51–$99)
• Email campaigns can drop as low as $5–$30
  
  
• Trade shows: ~$811 on average

So when you evaluate your cost per lead, compare within the same channel and conversion flow.

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Benchmarking With Business Goals

To truly judge your CPL, connect it with downstream metrics:

What's your lead-to-customer conversion rate? What's your CAC? What’s your ROI from those leads over time?

Let’s say your CPL is $50 and your conversion rate is 5%. That means it takes $1,000 to acquire a customer. If your LTV is $4,000, you're in a good place. If it's $800, you’ve got a problem.

So, then what's 'Good'?

Ultimately, a 'good' CPL is one that aligns with your business economics. If leads are high quality and convert well, paying more upfront might be worth it. If not, it’s time to optimize your campaigns.

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