James Dooley: So today we’re going to be talking about pay-per-lead. First of all — what is it?
Kasra Dash: Pay-per-lead is a lead generation model, also known as PPL, where businesses pay per lead. They set a fee and pay for each inquiry the lead generation company delivers.
James Dooley: For example, if I’m a landscaper, I might work with a cost-per-lead model and pay maybe £10 or £20 for each individual lead. Correct?
Kasra Dash: Yes, that’s correct.
James Dooley: What are the pros and cons for business owners using this type of model?
Kasra Dash: If the cost per lead is low and you’re good at converting those leads, you can make a lot of profit. You must track your KPIs and understand exactly how much profit you make once a job is converted.
Work out your conversion percentages—from a cold web lead to a closed job. If you’re willing to spend £300 cost-per-acquisition and you convert at 10%, then you’d be comfortable spending around £30 per lead.
If a lead generation company offers PPL for less than £30 per lead, then you’re in a good position. Once you understand your KPIs, you’ll quickly know whether those rates work for you or not.
James Dooley: And on the downside?
Kasra Dash: Sometimes the leads from certain companies just aren’t good quality. If you’re paying for a lead and the call isn’t answered, or the inquiry comes in with fake details like “Donald Duck” or “Mickey Mouse,” that’s a problem.
It’s important to have it in your agreement that fraudulent or dummy leads are refundable. Businesses must make sure those types of leads are not charged.
James Dooley: Good point. Now, how would someone find a company that offers a cost-per-lead model?
Kasra Dash: There are plenty of companies that provide PPL. Over at FatRank.com, they offer a pay-per-lead service and also a pay-on-performance lead generation model if the business qualifies.
You can head to FatRank.com, fill in the form on the contact page, and we’ll first check if you qualify for the pay-on-performance model. If not, the pay-per-lead model is available.
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