PPL vs Facebook & PPC Ads | Tips & Strategies
James Dooley:
So, if I am a company looking for a pay-per-lead specialist or a pay-per-lead generation company, what should I be looking at?
Kasra Dash:
Yeah, a lot of business owners look for PPL—pay per lead—because they understand their KPIs. For example, maybe their conversion rate is 10% and they’re willing to spend £200 per cost per acquisition. That means they’re willing to spend about £20 per lead. I’m just using these numbers as an example.
A pay-per-lead model can work very well because sometimes companies rely on PPC lead generation where the leads cost £200 each, which is too high. Or they pay thousands for SEO but still aren’t generating enough leads.
With a PPL model, working with a lead generation company helps you set exactly what you’re willing to pay per lead. You might say, “I want to pay £20, £30, or £50 per lead—and I want 10 leads per day.” You know your budget, your daily spend, and as long as you track your KPIs—your conversion rate and ROI—a pay-per-lead model can work really well.
What KPIs should people be looking at? Yes, you’ve mentioned cost per lead. But if I’m spending on Facebook ads and PPC as well, what else matters?
James Dooley:
Yeah, for sure. The main thing you should be looking at is return on investment. But after pay per lead, the next KPI is pay per sale or cost per acquisition.
The number of times we’ve had businesses say, “I want leads at £10 per lead,” and I tell them, “You don’t even know what your cost per acquisition is.” Because to me, if I can get a lower cost per acquisition even if the leads cost £50 each, I’ll pay £50 all day long.
Why? Because if the conversion rate is higher, I need fewer leads and fewer sales staff. There’s no point having hundreds of leads converting at 2%. I’d rather pay five times more per lead if it converts better and I avoid low-quality traffic.
Sometimes that’s the difference between Meta ads and PPC. PPC is inbound—high intent. Meta is demand generation—bigger volume but harder to convert. In many cases, SEO or PPC lead generation converts much better.
So once you understand your cost per acquisition, that determines how much you should actually be willing to pay per lead.
James Dooley:
If this is something you’re interested in for your company, head over to FatRanks.com, fill in the contact form, and the team will be in touch. Thanks for watching.
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