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How much cost per lead is acceptable?

by Mark Ethan
2 replies
Hi,

I want to use facebook ads to build a list but i don't know how much cost per lead is acceptable in affiliate marketing niche?

And average how many lead will convert into a sale if i have a good sales funnel?

Please give me a range.

Many thanks!
Mark
#acceptable #cost #lead
  • Profile picture of the author Jason Kanigan
    Depends on your offer/sale price, Mr. Mark.

    Which is why a Russ Ruffino can spend $100/completed application if he wants, closing 1/5...and make plenty of $$ because it's a $5-15K deal. So at that price, the answer is: Who Cares?!


    If your price is more like $47, then you're squished into a situation where you must keep that cost per lead down so you get enough "at bats" to convert.

    50 cents a lead? OK.

    $1 a lead? No go. Unless you're converting over 2% and want to do better than break even (and maybe you don't; if your FE is $47 but your back end is $197, and you make a BE sale on every eight FEs, say, that's all gravy and you can afford to actually LOSE money on the FE.)

    So you might be discovering this is a little more complicated than you had thought.

    Anyway, there is no average CPL. It has entirely to do with your own funnel.

    Develop baselines, then improve them. First Traffic, then Conversions.
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    • Profile picture of the author John Zoro
      I wish I read this post before I spent $200 on facebook ads ages ago.
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