Blog

How to Find the Value of a Lead

Blog

How to Find the Value of a Lead

Blog

How to Find the Value of a Lead

Blog

How to Find the Value of a Lead

Blog

How to Find the Value of a Lead

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Blog

How to Find the Value of a Lead

Formstack
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January 6, 2015
Blog

How to Find the Value of a Lead

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January 6, 2015
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Measuring your lead value can help you determine if your marketing campaigns are making money. If you spend more capturing a lead than they bring in, you’ve got a problem.In addition, lead value can be a great indicator for optimization. You can calculate the value of traffic from different sources (paid, social, etc.) and determine if certain channels generate higher-value leads than others. Optimizing your web experience may drive up your conversions—and your lead value.

First, define a “lead”

A lead is a qualified visit to your website—it is all about potential. This person hasn’t bought yet; he or she is a prospective customer who is interested in your product.

Create a simple formula

Even though lead calculation can get pretty complex, let’s look at a simple formula.

Average sale x Conversion rate = Lead value

Let’s say you sell sunglasses. Your average sale is $200 and your website converts at 2%.$200 x .02 = $4Each lead you get is worth $4. That means each person who stumbles upon your website—through search, clicking an ad, or from social media—has a value of $4.

Lead value impacts marketing spend

Your lead value can influence your marketing budgets. In this example, you wouldn’t bother with a pay-per-click ad that cost you $7 per click. It would cost you more per lead than they are worth. On the other hand, you might invest in social ads that cost $2 per click.Calculating lead value can be eye-opening. You might find that you are wasting money generating leads that are too expensive for your company. In that case, reallocate where you are investing in advertising.

Calculate lead value by source

To get even more detailed, you might want to calculate your value per lead by source. For example, you might sponsor a blog post whose audience seems to be right in line with your product. It might cost $6 per click. If that particular audience converts at 4% instead of your usual 2%, the extra money is worth it.$200 x .04 = $8For this traffic, your lead value is larger, so you can afford to spend a bit more on your cost per lead. Thank your algebra teacher. Now that you’ve got a basic lead-value calculator, you can better determine return on investment with your marketing. When you have hard numbers associated with your leads, it’s much easier to determine your marketing success.In addition, you might find that you are a prime candidate for optimization. Improving your lead’s experience may qualify more leads and lead to a higher overall lead value.

Learn more about using Google Analytics to track leads

Google Analytics is a great tool to track and optimize leads that come in from advertising or landing page campaigns.

Are you interested in learning more about how Google Analytics can help you cut through the data sludge? Download our exclusive research report, which has been featured in Huffington Post and Inc. I want the report!

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How to Find the Value of a Lead

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How to Find the Value of a Lead

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Measuring your lead value can help you determine if your marketing campaigns are making money. If you spend more capturing a lead than they bring in, you’ve got a problem.In addition, lead value can be a great indicator for optimization. You can calculate the value of traffic from different sources (paid, social, etc.) and determine if certain channels generate higher-value leads than others. Optimizing your web experience may drive up your conversions—and your lead value.

First, define a “lead”

A lead is a qualified visit to your website—it is all about potential. This person hasn’t bought yet; he or she is a prospective customer who is interested in your product.

Create a simple formula

Even though lead calculation can get pretty complex, let’s look at a simple formula.

Average sale x Conversion rate = Lead value

Let’s say you sell sunglasses. Your average sale is $200 and your website converts at 2%.$200 x .02 = $4Each lead you get is worth $4. That means each person who stumbles upon your website—through search, clicking an ad, or from social media—has a value of $4.

Lead value impacts marketing spend

Your lead value can influence your marketing budgets. In this example, you wouldn’t bother with a pay-per-click ad that cost you $7 per click. It would cost you more per lead than they are worth. On the other hand, you might invest in social ads that cost $2 per click.Calculating lead value can be eye-opening. You might find that you are wasting money generating leads that are too expensive for your company. In that case, reallocate where you are investing in advertising.

Calculate lead value by source

To get even more detailed, you might want to calculate your value per lead by source. For example, you might sponsor a blog post whose audience seems to be right in line with your product. It might cost $6 per click. If that particular audience converts at 4% instead of your usual 2%, the extra money is worth it.$200 x .04 = $8For this traffic, your lead value is larger, so you can afford to spend a bit more on your cost per lead. Thank your algebra teacher. Now that you’ve got a basic lead-value calculator, you can better determine return on investment with your marketing. When you have hard numbers associated with your leads, it’s much easier to determine your marketing success.In addition, you might find that you are a prime candidate for optimization. Improving your lead’s experience may qualify more leads and lead to a higher overall lead value.

Learn more about using Google Analytics to track leads

Google Analytics is a great tool to track and optimize leads that come in from advertising or landing page campaigns.

Are you interested in learning more about how Google Analytics can help you cut through the data sludge? Download our exclusive research report, which has been featured in Huffington Post and Inc. I want the report!

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How to Find the Value of a Lead

Measuring your lead value can help you determine if your marketing campaigns are making money. Optimizing your web experience may drive up your conversions.
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Measuring your lead value can help you determine if your marketing campaigns are making money. If you spend more capturing a lead than they bring in, you’ve got a problem.In addition, lead value can be a great indicator for optimization. You can calculate the value of traffic from different sources (paid, social, etc.) and determine if certain channels generate higher-value leads than others. Optimizing your web experience may drive up your conversions—and your lead value.

First, define a “lead”

A lead is a qualified visit to your website—it is all about potential. This person hasn’t bought yet; he or she is a prospective customer who is interested in your product.

Create a simple formula

Even though lead calculation can get pretty complex, let’s look at a simple formula.

Average sale x Conversion rate = Lead value

Let’s say you sell sunglasses. Your average sale is $200 and your website converts at 2%.$200 x .02 = $4Each lead you get is worth $4. That means each person who stumbles upon your website—through search, clicking an ad, or from social media—has a value of $4.

Lead value impacts marketing spend

Your lead value can influence your marketing budgets. In this example, you wouldn’t bother with a pay-per-click ad that cost you $7 per click. It would cost you more per lead than they are worth. On the other hand, you might invest in social ads that cost $2 per click.Calculating lead value can be eye-opening. You might find that you are wasting money generating leads that are too expensive for your company. In that case, reallocate where you are investing in advertising.

Calculate lead value by source

To get even more detailed, you might want to calculate your value per lead by source. For example, you might sponsor a blog post whose audience seems to be right in line with your product. It might cost $6 per click. If that particular audience converts at 4% instead of your usual 2%, the extra money is worth it.$200 x .04 = $8For this traffic, your lead value is larger, so you can afford to spend a bit more on your cost per lead. Thank your algebra teacher. Now that you’ve got a basic lead-value calculator, you can better determine return on investment with your marketing. When you have hard numbers associated with your leads, it’s much easier to determine your marketing success.In addition, you might find that you are a prime candidate for optimization. Improving your lead’s experience may qualify more leads and lead to a higher overall lead value.

Learn more about using Google Analytics to track leads

Google Analytics is a great tool to track and optimize leads that come in from advertising or landing page campaigns.

Are you interested in learning more about how Google Analytics can help you cut through the data sludge? Download our exclusive research report, which has been featured in Huffington Post and Inc. I want the report!

Measuring your lead value can help you determine if your marketing campaigns are making money. If you spend more capturing a lead than they bring in, you’ve got a problem.In addition, lead value can be a great indicator for optimization. You can calculate the value of traffic from different sources (paid, social, etc.) and determine if certain channels generate higher-value leads than others. Optimizing your web experience may drive up your conversions—and your lead value.

First, define a “lead”

A lead is a qualified visit to your website—it is all about potential. This person hasn’t bought yet; he or she is a prospective customer who is interested in your product.

Create a simple formula

Even though lead calculation can get pretty complex, let’s look at a simple formula.

Average sale x Conversion rate = Lead value

Let’s say you sell sunglasses. Your average sale is $200 and your website converts at 2%.$200 x .02 = $4Each lead you get is worth $4. That means each person who stumbles upon your website—through search, clicking an ad, or from social media—has a value of $4.

Lead value impacts marketing spend

Your lead value can influence your marketing budgets. In this example, you wouldn’t bother with a pay-per-click ad that cost you $7 per click. It would cost you more per lead than they are worth. On the other hand, you might invest in social ads that cost $2 per click.Calculating lead value can be eye-opening. You might find that you are wasting money generating leads that are too expensive for your company. In that case, reallocate where you are investing in advertising.

Calculate lead value by source

To get even more detailed, you might want to calculate your value per lead by source. For example, you might sponsor a blog post whose audience seems to be right in line with your product. It might cost $6 per click. If that particular audience converts at 4% instead of your usual 2%, the extra money is worth it.$200 x .04 = $8For this traffic, your lead value is larger, so you can afford to spend a bit more on your cost per lead. Thank your algebra teacher. Now that you’ve got a basic lead-value calculator, you can better determine return on investment with your marketing. When you have hard numbers associated with your leads, it’s much easier to determine your marketing success.In addition, you might find that you are a prime candidate for optimization. Improving your lead’s experience may qualify more leads and lead to a higher overall lead value.

Learn more about using Google Analytics to track leads

Google Analytics is a great tool to track and optimize leads that come in from advertising or landing page campaigns.

Are you interested in learning more about how Google Analytics can help you cut through the data sludge? Download our exclusive research report, which has been featured in Huffington Post and Inc. I want the report!

Collecting payments with online forms is easy, but first, you have to choose the right payment gateway. Browse the providers in our gateway credit card processing comparison chart to find the best option for your business. Then sign up for Formstack Forms, customize your payment forms, and start collecting profits in minutes.

Online Payment Gateway Comparison Chart

NOTE: These amounts reflect the monthly subscription for the payment provider. Formstack does not charge a fee to integrate with any of our payment partners.

FEATURES
Authorize.Net
Bambora
Chargify
First Data
PayPal
PayPal Pro
PayPal Payflow
Stripe
WePay
ProPay
Monthly Fees
$25
$25
$149+
Contact First Data
$0
$25
$0-$25
$0
$0
$4
Transaction Fees
$2.9% + 30¢
$2.9% + 30¢
N/A
Contact First Data
$2.9% + 30¢
$2.9% + 30¢
10¢
$2.9% + 30¢
$2.9% + 30¢
$2.6% + 30¢
Countries
5
8
Based on payment gateway
50+
203
3
4
25
USA
USA
Currencies
11
2
23
140
25
23
25
135+
1
1
Card Types
6
13
Based on payment gateway
5
9
9
5
6
4
4
Limits
None
None
Based on payment gateway
None
$10,000
None
None
None
None
$500 per transaction
Form Payments
Recurring Billing
Mobile Payments
PSD2 Compliant

Measuring your lead value can help you determine if your marketing campaigns are making money. If you spend more capturing a lead than they bring in, you’ve got a problem.In addition, lead value can be a great indicator for optimization. You can calculate the value of traffic from different sources (paid, social, etc.) and determine if certain channels generate higher-value leads than others. Optimizing your web experience may drive up your conversions—and your lead value.

First, define a “lead”

A lead is a qualified visit to your website—it is all about potential. This person hasn’t bought yet; he or she is a prospective customer who is interested in your product.

Create a simple formula

Even though lead calculation can get pretty complex, let’s look at a simple formula.

Average sale x Conversion rate = Lead value

Let’s say you sell sunglasses. Your average sale is $200 and your website converts at 2%.$200 x .02 = $4Each lead you get is worth $4. That means each person who stumbles upon your website—through search, clicking an ad, or from social media—has a value of $4.

Lead value impacts marketing spend

Your lead value can influence your marketing budgets. In this example, you wouldn’t bother with a pay-per-click ad that cost you $7 per click. It would cost you more per lead than they are worth. On the other hand, you might invest in social ads that cost $2 per click.Calculating lead value can be eye-opening. You might find that you are wasting money generating leads that are too expensive for your company. In that case, reallocate where you are investing in advertising.

Calculate lead value by source

To get even more detailed, you might want to calculate your value per lead by source. For example, you might sponsor a blog post whose audience seems to be right in line with your product. It might cost $6 per click. If that particular audience converts at 4% instead of your usual 2%, the extra money is worth it.$200 x .04 = $8For this traffic, your lead value is larger, so you can afford to spend a bit more on your cost per lead. Thank your algebra teacher. Now that you’ve got a basic lead-value calculator, you can better determine return on investment with your marketing. When you have hard numbers associated with your leads, it’s much easier to determine your marketing success.In addition, you might find that you are a prime candidate for optimization. Improving your lead’s experience may qualify more leads and lead to a higher overall lead value.

Learn more about using Google Analytics to track leads

Google Analytics is a great tool to track and optimize leads that come in from advertising or landing page campaigns.

Are you interested in learning more about how Google Analytics can help you cut through the data sludge? Download our exclusive research report, which has been featured in Huffington Post and Inc. I want the report!

Measuring your lead value can help you determine if your marketing campaigns are making money. If you spend more capturing a lead than they bring in, you’ve got a problem.In addition, lead value can be a great indicator for optimization. You can calculate the value of traffic from different sources (paid, social, etc.) and determine if certain channels generate higher-value leads than others. Optimizing your web experience may drive up your conversions—and your lead value.

First, define a “lead”

A lead is a qualified visit to your website—it is all about potential. This person hasn’t bought yet; he or she is a prospective customer who is interested in your product.

Create a simple formula

Even though lead calculation can get pretty complex, let’s look at a simple formula.

Average sale x Conversion rate = Lead value

Let’s say you sell sunglasses. Your average sale is $200 and your website converts at 2%.$200 x .02 = $4Each lead you get is worth $4. That means each person who stumbles upon your website—through search, clicking an ad, or from social media—has a value of $4.

Lead value impacts marketing spend

Your lead value can influence your marketing budgets. In this example, you wouldn’t bother with a pay-per-click ad that cost you $7 per click. It would cost you more per lead than they are worth. On the other hand, you might invest in social ads that cost $2 per click.Calculating lead value can be eye-opening. You might find that you are wasting money generating leads that are too expensive for your company. In that case, reallocate where you are investing in advertising.

Calculate lead value by source

To get even more detailed, you might want to calculate your value per lead by source. For example, you might sponsor a blog post whose audience seems to be right in line with your product. It might cost $6 per click. If that particular audience converts at 4% instead of your usual 2%, the extra money is worth it.$200 x .04 = $8For this traffic, your lead value is larger, so you can afford to spend a bit more on your cost per lead. Thank your algebra teacher. Now that you’ve got a basic lead-value calculator, you can better determine return on investment with your marketing. When you have hard numbers associated with your leads, it’s much easier to determine your marketing success.In addition, you might find that you are a prime candidate for optimization. Improving your lead’s experience may qualify more leads and lead to a higher overall lead value.

Learn more about using Google Analytics to track leads

Google Analytics is a great tool to track and optimize leads that come in from advertising or landing page campaigns.

Are you interested in learning more about how Google Analytics can help you cut through the data sludge? Download our exclusive research report, which has been featured in Huffington Post and Inc. I want the report!

Measuring your lead value can help you determine if your marketing campaigns are making money. If you spend more capturing a lead than they bring in, you’ve got a problem.In addition, lead value can be a great indicator for optimization. You can calculate the value of traffic from different sources (paid, social, etc.) and determine if certain channels generate higher-value leads than others. Optimizing your web experience may drive up your conversions—and your lead value.

First, define a “lead”

A lead is a qualified visit to your website—it is all about potential. This person hasn’t bought yet; he or she is a prospective customer who is interested in your product.

Create a simple formula

Even though lead calculation can get pretty complex, let’s look at a simple formula.

Average sale x Conversion rate = Lead value

Let’s say you sell sunglasses. Your average sale is $200 and your website converts at 2%.$200 x .02 = $4Each lead you get is worth $4. That means each person who stumbles upon your website—through search, clicking an ad, or from social media—has a value of $4.

Lead value impacts marketing spend

Your lead value can influence your marketing budgets. In this example, you wouldn’t bother with a pay-per-click ad that cost you $7 per click. It would cost you more per lead than they are worth. On the other hand, you might invest in social ads that cost $2 per click.Calculating lead value can be eye-opening. You might find that you are wasting money generating leads that are too expensive for your company. In that case, reallocate where you are investing in advertising.

Calculate lead value by source

To get even more detailed, you might want to calculate your value per lead by source. For example, you might sponsor a blog post whose audience seems to be right in line with your product. It might cost $6 per click. If that particular audience converts at 4% instead of your usual 2%, the extra money is worth it.$200 x .04 = $8For this traffic, your lead value is larger, so you can afford to spend a bit more on your cost per lead. Thank your algebra teacher. Now that you’ve got a basic lead-value calculator, you can better determine return on investment with your marketing. When you have hard numbers associated with your leads, it’s much easier to determine your marketing success.In addition, you might find that you are a prime candidate for optimization. Improving your lead’s experience may qualify more leads and lead to a higher overall lead value.

Learn more about using Google Analytics to track leads

Google Analytics is a great tool to track and optimize leads that come in from advertising or landing page campaigns.

Are you interested in learning more about how Google Analytics can help you cut through the data sludge? Download our exclusive research report, which has been featured in Huffington Post and Inc. I want the report!

Measuring your lead value can help you determine if your marketing campaigns are making money. If you spend more capturing a lead than they bring in, you’ve got a problem.In addition, lead value can be a great indicator for optimization. You can calculate the value of traffic from different sources (paid, social, etc.) and determine if certain channels generate higher-value leads than others. Optimizing your web experience may drive up your conversions—and your lead value.

First, define a “lead”

A lead is a qualified visit to your website—it is all about potential. This person hasn’t bought yet; he or she is a prospective customer who is interested in your product.

Create a simple formula

Even though lead calculation can get pretty complex, let’s look at a simple formula.

Average sale x Conversion rate = Lead value

Let’s say you sell sunglasses. Your average sale is $200 and your website converts at 2%.$200 x .02 = $4Each lead you get is worth $4. That means each person who stumbles upon your website—through search, clicking an ad, or from social media—has a value of $4.

Lead value impacts marketing spend

Your lead value can influence your marketing budgets. In this example, you wouldn’t bother with a pay-per-click ad that cost you $7 per click. It would cost you more per lead than they are worth. On the other hand, you might invest in social ads that cost $2 per click.Calculating lead value can be eye-opening. You might find that you are wasting money generating leads that are too expensive for your company. In that case, reallocate where you are investing in advertising.

Calculate lead value by source

To get even more detailed, you might want to calculate your value per lead by source. For example, you might sponsor a blog post whose audience seems to be right in line with your product. It might cost $6 per click. If that particular audience converts at 4% instead of your usual 2%, the extra money is worth it.$200 x .04 = $8For this traffic, your lead value is larger, so you can afford to spend a bit more on your cost per lead. Thank your algebra teacher. Now that you’ve got a basic lead-value calculator, you can better determine return on investment with your marketing. When you have hard numbers associated with your leads, it’s much easier to determine your marketing success.In addition, you might find that you are a prime candidate for optimization. Improving your lead’s experience may qualify more leads and lead to a higher overall lead value.

Learn more about using Google Analytics to track leads

Google Analytics is a great tool to track and optimize leads that come in from advertising or landing page campaigns.

Are you interested in learning more about how Google Analytics can help you cut through the data sludge? Download our exclusive research report, which has been featured in Huffington Post and Inc. I want the report!

Measuring your lead value can help you determine if your marketing campaigns are making money. If you spend more capturing a lead than they bring in, you’ve got a problem.In addition, lead value can be a great indicator for optimization. You can calculate the value of traffic from different sources (paid, social, etc.) and determine if certain channels generate higher-value leads than others. Optimizing your web experience may drive up your conversions—and your lead value.

First, define a “lead”

A lead is a qualified visit to your website—it is all about potential. This person hasn’t bought yet; he or she is a prospective customer who is interested in your product.

Create a simple formula

Even though lead calculation can get pretty complex, let’s look at a simple formula.

Average sale x Conversion rate = Lead value

Let’s say you sell sunglasses. Your average sale is $200 and your website converts at 2%.$200 x .02 = $4Each lead you get is worth $4. That means each person who stumbles upon your website—through search, clicking an ad, or from social media—has a value of $4.

Lead value impacts marketing spend

Your lead value can influence your marketing budgets. In this example, you wouldn’t bother with a pay-per-click ad that cost you $7 per click. It would cost you more per lead than they are worth. On the other hand, you might invest in social ads that cost $2 per click.Calculating lead value can be eye-opening. You might find that you are wasting money generating leads that are too expensive for your company. In that case, reallocate where you are investing in advertising.

Calculate lead value by source

To get even more detailed, you might want to calculate your value per lead by source. For example, you might sponsor a blog post whose audience seems to be right in line with your product. It might cost $6 per click. If that particular audience converts at 4% instead of your usual 2%, the extra money is worth it.$200 x .04 = $8For this traffic, your lead value is larger, so you can afford to spend a bit more on your cost per lead. Thank your algebra teacher. Now that you’ve got a basic lead-value calculator, you can better determine return on investment with your marketing. When you have hard numbers associated with your leads, it’s much easier to determine your marketing success.In addition, you might find that you are a prime candidate for optimization. Improving your lead’s experience may qualify more leads and lead to a higher overall lead value.

Learn more about using Google Analytics to track leads

Google Analytics is a great tool to track and optimize leads that come in from advertising or landing page campaigns.

Are you interested in learning more about how Google Analytics can help you cut through the data sludge? Download our exclusive research report, which has been featured in Huffington Post and Inc. I want the report!

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Formstack is a SaaS company with a mission to help organizations digitize what matters, automate workflows, and fix processes—all without code. A variety of team members come together to compile posts under Formstack's authorship.
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