One idea I spoke about in my latest podcast is the WHO behind the leads you get.
Many in the info product, coaching, or consulting space are obsessed with CPL.
(Cost Per Lead – Refers to how much you’re paying for one lead you get)
There’s nothing wrong with that…
However, Elias shared something interesting during the podcast.
He once helped a client with a very low CPL…
The client was overjoyed because he acquired these leads for cheap.
Until he hopped on an appointment with the leads…
He faced plenty of problems:
- He had so many leads that he didn’t know how to prioritize who to close.
- There were No-Shows where people booked a call but didn’t turn up.
- The leads weren’t responsive. They don’t reply when you follow up with them.
- Leads asking weird questions that showed they weren’t a good fit.
- All kinds of people started to come. People who weren’t qualified showed up.
Ultimately, the conversion was very poor.
The client wasted a lot of time on the entire marketing campaign.
So, while the CPL is low, the Cost Per Acquisition is very high.
What’s the difference?
While we measure the cost per lead with CPL…
Cost Per Acquisition refers to the cost per close or sale you make…
In the example of Elias’ client, he was paying pennies for the leads…
But he was paying a massive price because he wasted a lot of time (and money) on the lead generation campaign.
At the end of the day, he got a ton of leads he couldn’t work with.
And all that advertising spend went to the drain.
Lesson here?
Don’t be too concerned with the CPL.
If the CPL is too low, then it’s also not necessarily good news.
You will pay for it in the form of poor lead quality, which creates a list of problems.
Personally, I would rather pay more for high-quality leads.
It saves a lot more time, and you can attract the crowd you want.
To Making Millions Together,
Bryan Ang
