Enter the total number of qualified leads and the total cost into the calculator to determine the cost per qualified lead.

Cost Per Qualified Lead Formula

The following equation is used to calculate the Cost Per Qualified Lead.

CPQL = TC / QL
  • Where CPQL is the cost per qualified lead ($/qualified lead)
  • TC is the total cost ($)
  • QL is the number of qualified leads

To calculate the cost per qualified lead, divide the cost of advertising by the number of leads that fit the specific criteria.

What is Cost Per Qualified Lead?

Definition:

Cost per qualified lead is an extension of the term cost per lead. It distinguishes between all leads and those that set a fixed set of qualifications, for example, directly due to advertising, etc.

How to Calculate Cost Per Qualified Lead?

Example Problem:

The following example outlines the steps and information needed to calculate Cost Per Qualified Lead.

First, determine the number of qualified leads. In this example, 500 leads met preset criteria.

Next, determine the cost it took to generate those leads. In this case, the cost was $10,000.00.

Finally, calculate the cost per qualified lead using the formula above:

CPQL = TC / #QL

CPQL = 10,000 / 500

CPQL =$20 / lead

FAQ

What factors can affect the cost per qualified lead?

The cost per qualified lead can be influenced by several factors including the advertising platform used, the target audience’s engagement level, the quality of the ad content, the competitiveness of the industry, and the effectiveness of the lead qualification process.

How can businesses reduce their cost per qualified lead?

Businesses can reduce their cost per qualified lead by optimizing their advertising campaigns for higher conversion rates, targeting a more specific audience, improving the quality of their ad content, using A/B testing to find the most effective strategies, and refining their lead qualification criteria to ensure they are capturing high-quality leads.

Why is tracking the cost per qualified lead important?

Tracking the cost per qualified lead is crucial for businesses because it helps them measure the efficiency of their advertising spend in generating leads that meet their qualification criteria. It allows businesses to identify areas for improvement in their marketing strategies, allocate their budget more effectively, and ultimately increase their return on investment (ROI).