“That lead source is cheap, so we’ll spend our money there.” That sentence cost us $200,000. We found it buried in one line of the P&L, money spent on leads we were never actually tracking through to conversion and sale value. Cost per lead means nothing without booking rate, conversion, and average sale attached to it. Measure the whole funnel or risk finding your own $200K.
@officialchadpetermanTranscript
I found $200,000 we were lighting on fire, and it was in one line item of the P&L. If you're not measuring every lead source that you have, if you're not understanding what the exact ROI is for a lead source, then you could risk doing this as well. We've got to be measuring every lead source. Well, TV's expensive. Well, this lead source is really cheap, so we're going to spend our money over here. Well, what type of lead is it delivering? Are you converting that lead? What's your average sale? All of these things have to be taken into consideration. It's not, oh, well, that lead source seems to be driving me leads. Well, what are we doing with those leads? Are we able to book the leads? All of these things, you need to look through the entire funnel to determine is a lead source really producing for you.
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