Cost per lead (CPL) is a marketing performance metric that quantifies the average expense required to generate a single lead through marketing or partnership efforts. In the context of partnerships, CPL helps revenue leaders assess the efficiency of their lead generation investments. A lead typically represents a prospective customer who has demonstrated interest by taking a measurable action, such as submitting a contact form, signing up for a trial or engaging with a partner-referred campaign.
To calculate CPL, divide the total campaign or partnership cost by the number of qualified leads generated. For example, if a co-branded webinar with a strategic partner costs $5,000 and yields 250 leads, the CPL would be $20.
For partnership and revenue leaders, optimizing CPL is essential for maximizing return on investment (ROI) while ensuring lead quality aligns with sales objectives. A lower CPL indicates cost-efficient lead acquisition, but it must be balanced with conversion rates and lifetime value (LTV) to avoid prioritizing quantity over quality.
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The startup optimized its LinkedIn ads to reduce its CPL from $50 to $20, significantly improving ROI.
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