Free Lead Value calculator with clear step-by-step results.
Values a single lead by working from close rate, sale value and margin, then adds repeat purchases and subtracts the cost of actually working the lead. The result is the break-even bid for a lead, which is the number to take into any paid channel or lead-purchase negotiation.
Gross profit per lead
Profit = close rate x average sale x gross margin x repeat multiplier
Net value
Net = gross profit per lead - sales handling cost per lead
Every lead consumes time whether or not it closes. On low close rates that cost is material - a 4% close rate means twenty-five leads are handled for each sale.
No. That is break-even. Paying 50-70% of it leaves a margin for forecast error and for the lead quality being worse than assumed.