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Calculate Your Cost-per-Lead and Marketing ROI

The Cost-per-Lead/Return-on-Investment model below enables you to compare the costs and benefits of different marketing strategies on a true, apples-to-apples basis.

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Customize the Model: If you would like to customize the input for the CPL/ROI model, please enter your email address below so we can send you an Unlock Code.

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Step 1: Enter Your Marketing Program Objectives

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Lead Generation - Cost Comparison Worksheet
Enter Your Goals and Assumptions Input
Gross Revenue Target ($) (more)
Financial Assumptions
Average Sale ($) (more)
Average Gross Margin (%) (more)
Average Cost/Field Sales Call ($) (more)

Step 1: Enter Your Marketing Program Objectives

When you enter your Revenue Target, your Average Sale, and your Average Cost for a Field Sales call, use integers - i.e. with no dollar signs or commas (e.g. Enter "5000" for $5,000.00). Enter your Average Gross Margin as a decimal (i.e. enter "0.35" for 35%).

Step 2: Enter Your Marketing Program Costs

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Program Assumptions Input
Program Name   Inbound Marketing Program
Management Costs   $5,000.00
Set-Up Costs   $1,500.00
Volume Dependent Costs Number of Units (e.g. number of hours, emails, targets, postings, etc.) 200
Units (e.g. hours, emails, targets, postings, etc.) Blog Postings
"Per-Unit" Cost (e.g. $/hour, $/email, $/target, $/posting, etc.) $25.00

Step 2: Enter Your Marketing Program Costs

Enter any text you'd like for your program name. Use integers for your Management Costs, Set-Up Costs, Number of Units, and Per-Unit costs - i.e. with no dollar signs or commas. (Thus, the pre-populated example can be read as follows: Management expense for the Inbound Marketing Program is $5,000. The Set-Up Cost is $1,500. The Volume Dependent component is going to be 200 Blog Postings, at $25/Posting, which will calculate out to $5,000 in the model. The total cost will be, therefore, $11,500.)

Step 3: Enter Your Expected Results

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Program Results Input
Leads Produced 10

Step 3: Enter Your Expected Results

In the pre-populated case, we're predicting that the program will produce 10 (unqualified) sales leads from the 200 blog postings.

Step 4: Qualifying Your Sales Leads

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Lead Qualification (e.g. Telemarketing Follow-Up) Assumptions Input
Program Set-Up Cost ($) $1,000.00
Hourly Cost ($) $40.00
Lead Qualification
(e.g. telemarketing)
Expected dial rate
(dials/hour, e.g. 10)
Expected contact rate
(dials/contact, e.g. 5)
Expected Conversion Rate
(% of leads that become appts, e.g. 0.25)
Expected call duration
(minutes/call, e.g. 10)
Expected Close Rate
(percentage of qualified leads that close, e.g. 25%)

Step 4: Enter Your Lead Qualification Costs

In the example above, we're assuming that it costs $1,000 to set-up the Lead Qualification program (entered as "1000") which will cost $40/hour (entered as "40") to run. It is expected to have a dial-rate of 10 dials/hour, and that we'll talk to a decision maker on every fifth attempt (i.e. a dials/contact of 5:1, or a 20% contact rate.) It is expected that 25% of the contacts will convert to an actual, qualified sales lead (i.e. an initial appointment). And we're assuming that a good call with a decision maker (e.g. to set up the appointment) will take around 10 minutes long.

In order to get to a revenue and ROI forecast, the model also allows you to include an Expected Close Rate (i.e. the fraction of prospects with whom there is an initial appointment who will eventually buy) of 25% (entered as ".25").

Step 5: Run the Model

If you've unlocked the model (by entering an Unlock code) then you will be able to enter your own parameters. Otherwise, the model will run with the pre-populated assumptions.


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Cost-per-Lead Examples

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