How to charge per lead…
The lead generation business is growing by the day, and Flexxable’s pay-per-lead model has become a bit of a revolution.
(Not to brag, or anything).
But as more people jump the retainer contract ship, they find themselves a little lost.
How much should they charge per lead in their industry?
Is there a way to work it out, or does it all come down to experience?
I get it.
You don’t want to plug away for months, only to find you’re making half the profit you could.
Truth is, every industry is different, and there’s no one-size-fits-all answer.
That said, we have a cheeky little method to figure out what to charge.
Use it as a general rule of thumb, and it should point you in the right direction.
The simple calculation goes like this:
- Work out the Average Order Value (AOV) of the customer. E.g. a converted lead could be worth $3,000 in a particular industry.
- Divide the AOV by 3. ($3,000/3 = $1,000)
- Figure out the 5% conversion rate (5/100 x $1,000 = $50)
And lo and behold, you’ve got your price per lead. In this case, $50.
This is a straightforward calculation to get you started.
We use this very same method at Flexxable, and so far it hasn’t caused us any problems.
Remember, this is just a ballpark figure, but it’s a great way to figure out how much your services are worth.
So you’ve figured out how much to charge per lead.
Want to find out how to sell with confidence?
We’ve got a video all about that.
As well as so many others all about lead gen.
Check out and subscribe to the Flexxable YouTube channel.