It’s a standard query, however you most likely know the reply: It relies upon.
Nonetheless, you want higher than “it relies upon.” How are you going to decide whether or not your Price Per Lead is nice — and even acceptable?
The price of a lead when selling a freebie lead magnet is not going to be the identical as a result in focus on the acquisition of actual property. The worth of those leads received’t be the identical both. High quality additionally issues, so you may’t focus an excessive amount of on the associated fee.
Let’s suppose by tips on how to strategy this…
Lead Worth
The primary factor to grasp is what a lead is price to you. What share of those individuals find yourself shopping for from you? What’s the typical worth of those prospects? This may give you a baseline of lead worth and the way a lot you need to be prepared to spend.
This math isn’t all that difficult. As an alternative of specializing in the worth of leads usually, you must isolate people who got here out of your promoting since outcomes can fluctuate.
If a brand new actual property shopper leads to a median of $10,000 in income, one lead can have a number of worth. Even when 5% of leads grow to be prospects, that’s a median lead worth of $500. In different phrases, such an organization ought to be okay with spending as much as $500 per lead on this situation.
If a buyer is extra more likely to be price $100 and 5% convert, the worth is nearer to $5. This can be the extra typical scenario. It’s essential to watch your Price Per Lead since something over $10 (or so) simply isn’t price it.
However all of those numbers change rapidly relying in your Buyer Lifetime Worth and conversion price from leads.
What Are You Asking For?
You must also take into consideration the trade and the way probably it’s that somebody will grow to be a lead.
In the actual property situation, somebody wants to have the ability to afford actual property, out there for it, keen on what you’re promoting, and prepared to hop on a name to debate it. That’s a number of {qualifications} — and it’s additionally a doubtlessly massive dedication. Your lead price will mirror that.
If you’re providing a free video sequence that requires nothing past an electronic mail handle, there are far fewer boundaries stopping an individual from offering their info. They have to be , however there’s just about no dedication concerned. The associated fee will mirror his, too.
That is no less than serviette math to get you began.
