What Is Your Cost Per Lead? What Is Your Cost Per Sale

What Is Your Cost Per Lead? What Is Your Cost Per Sale

Hi everyone, it’s Matt the Intern! Today I experienced my first Client meeting and learned a ton about Cost Per Leads, and Cost Per Sales. I am really excited to share what I’ve learned, and have broken it down and in a way that should be easy to understand.

 

What Is Your Cost Per Lead?

Cost Per Lead is measuring the amount of money you spend on paid online advertising divided by the number of leads you acquire.

A Lead happens when someone fills out a form, calls the number on your website, downloads an app, …

Basically, you divide the amount spent on your Google advertising, by the number of people who contact your company.

For example: In our meeting today, our client spent $2448 on his Google ad campaign last week, and 79 people filled out a form or called the company. The Cost Per Lead ended up as  $2448/79 leads = $30.98 Cost Per Lead.

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What Is Cost Per Sale?

Cost Per Sale is calculated by measuring the amount of money you spend divided by the number of people that purchase goods or services from your company.

In our client’s case, we divided the amount spent ($2448) by the number of people that purchased a product or service from his company (22 sales). $2448/22 = $75 Cost Per Sale. And the total revenue from monthly web sales was $64,484.26.

The average revenue per sale was $2931.1 so the client was very happy with web performance last month!

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