Glossary term
What is Cost per lead?
Short answer
Cost per lead is the amount a business spends on marketing to get one new lead, found by dividing total marketing spend by the number of leads it produced.
Cost per lead, explained for tree service owners
Cost per lead helps you compare marketing channels on equal terms. Add up what you spent on ads, directories or other marketing in a period, then divide by the number of real leads you received. A lead is not a booked job, so look at cost per lead next to your close rate and average job value. A cheap lead that never answers is not cheap, and a pricier lead that books often can be a better deal. Count leads you lose to missed calls too, since you already paid to earn them.
Related terms
- Average job value
Average job value is the typical amount a tree service earns from one completed job, found by dividing total job revenue by the number…
- Close rate
Close rate is the percentage of estimates or quotes that turn into booked jobs, found by dividing the number of jobs won by the number…
- Lead
Lead is a person or household that has shown interest in a business's service, for example by calling, texting or filling in a form, but…
- conversion tracking
Conversion tracking is the setup that counts useful actions on your site or ads, such as calls, form fills and booked estimates.
- Lead source
Lead source is the place where a lead first came from, such as a Google search, a referral, a paid ad, a yard sign or a website form.
More terms, A to Z
All 199 glossary terms This term in the A-Z list Learn by topic Our services Pricing
Want to know how your company does on this?
Get a free 5-minute audit of your phone, website and Google profile. We check what you can see from the outside, in plain English. No call needed.
Get my free 5-minute audit