Every company selling corporate solutions is doing lead gen, so the ultimate question is, what’s the maximum cost per lead in a marketing campaign which can bring positive ROI?

Here’s a quick guide how we count the initial numbers needed to do successful lead gen:

Methodology

In the analyses outrageously large sales are omitted because they can sufficiently change the ratios.

We count as one lead sale – one product name, because most of the leads that generate sales – sell only one of the revised products.

We then count the number of products sold in every contract and the sales price for one product.

Then we multiply the number of products by their sales price and write that down for every contract.

Average sale price (ASP)

We count the total sales from all the contracts by each product and divide this figure by the number of contracts. Thus we receive the average sale price (ASP) for one contract.

Maximum cot per lead (CPL)

We take x% for each average transaction sum and thus receive the maximum CPL which we are ready to pay in a marketing campaign.

Average sale per lead (ASL)

We take the total sum received from specific leads for a period of time and divide this figure by the number of leads received in the same time range.

How to count the x%

To prove that the x% assumption is the right figure for counting the maximum CPL, we count the average sale per lead (ASL) confined to a specific product, i.e. the figure which would give a $0 ROI in a campaign in case it is taken as the CPL.

Because on average an even number of leads sell each of the revised products, we divide the total number of leads received by the number of products in the analysis and receive the average number of leads dedicated to each product.

Then we divide the total sum received from each product by this figure and receive the same maximum CPLs, so performing everything the other way around, you will get the x% which you can use for future analysis.