Glossary · C
Cost per lead
Marketing spend divided by the number of prospects generated — the entry price of a potential customer.
Cost per lead divides a marketing spend by the number of prospects it generates: $500 in ads producing 20 calls = $25 per lead. It's calculated per channel — local SEO, Google Ads, truck signage, near-zero-cost word of mouth — to compare investments objectively. In local services, typical ranges run from a few dollars (well-ranked SEO) to over $100 (paid ads in a competitive area).
The figure has a hidden side: a lead is only a ring. Cost per lead only becomes a profitable investment if someone answers — a $40 prospect hitting a voicemail is a pure loss, twice as painful as the ad spend itself. That's why serious businesses track cost per lead and missed call rate side by side: combined, they give the true cost per opportunity.
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