Do You Have Obsessive Cost Per Lead Disorder?
Resource Library Lead Management

Do You Have Obsessive Cost Per Lead Disorder?

You are driving down the highway and enter a tunnel. Tunnel lights flash as you speed through, curving at the turns and racing towards the farthest point ahead. Then, out of nowhere it seems, you emerge on the other side, light flooding your car.

It is easy to experience tunnel vision with your cost per lead numbers. The lower the price, the easier it becomes to forget about all the other factors such as, you know, lead conversion.  

How do you cure yourself of obsessive cost per lead disorder? First, realize CPL is not the only factor contributing to your bottom line. Instead of obsessing over CPL, direct the efforts within your control.

 Cost Per Lead Is a Small Piece of the Puzzle

The puzzle is return on investment. And the pieces are your total cost and revenue. Your conversion rate, which directly affects revenue, is where you need to place your focus.


Real Estate Cost Per Lead


Improving your conversion rate and in turn you total revenue is more impactful than any remotely similar changes in cost per lead.

Why is this?  Because cost per lead does not take demand into account.

For example: You have one lead which will not pan out at all, and another who could become a lifetime client. The cost per lead doesn’t take these details into account. CPL only considers the cost of the lead generation and the number of leads produced.

Take Control of Your Conversion Rate

Bottom Line: If you increase your conversion rate by only ½ a percent it will increase your return on investment by much higher than if you lowered your cost per lead by 50 percent.

Let this soak in for a second … It is time to focus on lead cultivation.

Catch Up On Your Lead Cultivation Process 


It is old news that the majority of real estate consumers begin their searches on the internet. And users are finding their answers on several sites before committing to a particular real estate business.

Chances are you leads are registered on other sites who are also vying for their business. In a moment of frustration or indecision it is easy to blame Cost Per Lead or go with the company advertising lower CPL’s.

But the real value lies within affecting your overall ROI equation.

Cost Per Lead Versus Return on Investment 

The 2016 Swanepoel Trends Report repeatedly emphasizes the importance of building relationships online. Lead generation both online and offline is what fuels your business, but lead cultivation is how deals are closed.

Hopefully by this point the tunnel vision is gone and you are starting to see the light of day.

It doesn’t matter if your cost per lead is one cent as long as your conversion rate is dismal. Out of context, cost per lead quickly becomes misleading. But if you make a point to consider CPL in the bigger picture of ROI the puzzle is solved much faster.

Cost Per Lead

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