CPL (Cost Per Lead)
Cost Per Lead (CPL) is the average amount you spend on advertising to get one lead. A "lead" is someone who showed interest: filling out a form, signing up for a trial, downloading a resource, requesting a demo, etc.
CPL = Total Ad Spend / Total Leads Generated
So $2,000 spent on ads generating 40 leads = $50 CPL.
CPL is especially important for B2B and SaaS, where people don't just buy on the first visit. The sales cycle is longer, so you're paying to get someone into your pipeline, not directly for a sale.
The number itself means nothing without context though. A $100 CPL sounds expensive, but if your Customer Lifetime Value is $5,000 and 20% of leads convert to customers, your actual CAC is $500. Still very profitable.
You can lower CPL by improving ad targeting, testing different lead magnets, optimizing your landing page conversion rate, and refining audiences. Platforms with lower CPC and higher CTR tend to produce lower CPLs naturally.
Use our CAC Calculator to see how CPL fits into your overall acquisition costs.
Frequently Asked Questions
It depends on your industry, product value, and sales cycle. B2B SaaS companies often see CPL between $30-150, while e-commerce lead gen can be $5-30. The key is comparing CPL to your customer lifetime value. If a customer is worth $5,000, a $100 CPL is excellent.
CPL measures the cost to acquire a lead (someone who showed interest, like filling a form), while CPA (Cost Per Acquisition) measures the cost to acquire a paying customer. CPL is earlier in the funnel, since not all leads become customers.