Your cost per lead can look great and still be lying to you. $50 a lead sounds cheap. But if your booking rate is only 50%, your real cost to actually book that lead just doubled to $100. Marketing spend has to be measured all the way through the funnel, not just at the entry point.
@officialchadpetermanTranscript
When you're evaluating your lead sources, it is imperative to look at cost all the way through the funnel. Let me explain. The factors we want to be looking at are obviously cost per lead. Total marketing spend will know that number, but we also want to be looking at booking rate. And then ultimately, what is our cost per booked lead? So leads that we are actually going to have an opportunity to convert and take care of customers. Let's put an example on the board. Let's just say our cost per lead is around $50 for easy math. That puts our marketing spend at around $5,000 to generate those 100 leads. Let's say our booking rate is 50%. So we're booking half of those 100 leads that we brought in. Our previous cost per lead was $50. That's pretty good. However, if we only book 50% of those, our actual cost per book lead jumps to $100. When you're looking at that, you need to understand how this is impacting what you're actually spending on your marketing. Are you getting the opportunity to run all the leads that you paid for?
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