How Much Should You Pay for a Lead? | Fubbi


How Much Should You Pay for a Lead?


So often I’m asked how much a business should pay for a lead. 

And the simple truth is that there isn’t a definitive answer. The amount you should pay depends on your model, your margin, your cash situation and more. 

Let me give you an example.

I have a client who’s among the top 1% of mortgage brokers in the country. And she knows that she can’t afford to pay more than $69 per discovery call. Any more and the call becomes unfeasible.

So…what does that mean for her lead cost?

Let’s say she spends $1,000 on ads. 

That means she needs to generate 14.5 discovery calls. Any less and the ad campaign is a failure. She’s spending more on the campaign than it’s worth.

For example, if she gets 10 discovery calls from that campaign, she’s spending $100 per call. 

That’s beyond what she can afford to pay. 

Now…here’s the point.

$69 isn’t a hard and fast number for every business.

It’s the number that applies to our client’s business.

Yours may be higher or lower, depending on what you’re selling. And in my next email, I’m going to explain how we got to $69 so you can use the method to figure out your ideal lead cost, too.


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