Cost per lead (CPL) is what you pay for a lead. Cost per acquisition (CPA) is what you pay for a customer. Only the second one tells you whether a program works.
The formula
CPA = CPL divided by close rate. If you pay $30 per lead and close 10%, your CPA is $300.
Example comparison
| Source | CPL | Close rate | CPA |
|---|---|---|---|
| Shared | $24 | 4% | $600 |
| Exclusive | $64 | 15% | $427 |
The exclusive source costs more per lead and less per sale. Your numbers will differ, but the logic holds.
Add the hidden costs
- Agent time per lead
- Software and dialer costs
- Returns and replacements
Compare to customer value
If a customer is worth $1,200 in commission over time, a $427 CPA is excellent. If worth $350, it is not. Know your lifetime value.
Plug your own numbers into our pricing calculator.
Frequently asked questions
What is a good CPA?
One comfortably below the profit you earn per customer, after all costs. It differs by industry and product.
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Order leads ↗General educational information, not legal, financial or compliance advice. Prices shown are indicative ranges; final rates are confirmed in writing.
