To the main page

Expensive Leads from Advertising: What to Do About It

Hey there, fellow marketers!

So, you’ve just been hit with some shocking news: those advertising leads are unbelievably expensive, and you’re left wondering what on earth is happening, right?

Let’s break it down!

First Things First

Do you even have leads, or is it just one lead for 3,000 bucks? Because if we’re talking about the latter, that’s NOT expensive; that’s a sales funnel issue. It means either there’s a major bottleneck somewhere, or your entire funnel is clogged with them. Or perhaps, the test and the idea just didn’t pan out because 3,000 bucks is simply a test — no need to make a big fuss about it.

What’s “Expensive” Anyway?

When you say “expensive,” compared to what? For example, in 2021, leads in our projects often cost 2–4 times less than they do now. Is that normal? Yes! Cheap traffic has become nearly extinct, projects are expanding, and that brings us to point number 3.

The More, The Costlier

The more traffic you bring in and the more leads you want, the more expensive those extra leads will become on average, thanks to the rising cost of additional leads. So, sometimes you can get 5–10–15 leads quite cheaply, like $10 each (and even that’s questionable these days). But getting 50–100–150 leads for $100 each won’t cut it. If you’re aiming for 500–1000–1500 leads, the cost will be even higher. But there’s a big BUT here.

Overheads, Overheads, Overheads

There are also overhead costs, meaning expenses related to organizing traffic and leads. Because of this, having just 5–10–15 leads usually isn’t cost-effective. You either have to do it all yourself and invest your time (is that worth it?), or hire someone, which, when divided by the number of leads, results in a very high cost. So, we’re limited by rising costs from above and overheads from below — finding the sweet spot is key.

It’s All About the Numbers

Business and marketing are all about numbers, not just your gut feeling about them. So, if your business model is working, “expensive” leads are just par for the course. If the business model isn’t working, then even “cheap” leads are too expensive. Work with the entire funnel and keep an eye on your goal achievement — that’s the way to go.

Who will start looking for jobs first, humans or machines?

Back to Basics

Sometimes, marketing happens without a clear plan, like “let’s do something just because” or “we need to do something.” In such cases, it’s better to start from scratch rather than the end. Build up your knowledge, define goals, strategies, plans, tasks, and KPIs. Then, start testing and evaluate the results. Nope, it’s not just fancy jargon; it’s what you can’t do without when it comes to management.

Measure to Manage

Because “expensive” leads equal an unmanageable process. To manage something, you need to start by measuring it, setting goals, finding ways to achieve them, then tracking progress and making adjustments. Scaling success, minimizing failures — easy-peasy, business coach-style.

Even This Might Not Save You

Sometimes, competitors are willing to pay more than you — meaning they have a more efficient business model. Sometimes, various shady practices and fake numbers are involved. If you have no competitors, maybe your idea is unique to you, and even here, not much can save you.

No Single Solution

There’s no single solution and no “best channel” for attracting clients. Relying solely on one channel is risky. Even if that one channel is fantastic and the rest aren’t performing well, you should look at multi-channel analytics and how people find you in general. And consider what happens if that one channel disappears.

Leads come in all shapes and sizes.

Remember, any result is a result and can be worked with. It might mean rejection, adjustments, scaling, or seeking alternative approaches. Marketing isn’t about rigid tracks; there’s no shortage of ideas.

Scroll to Top