The Only Way to Decide If Your Ad Is Actually Working (Hint: It's Not Cost Per Lead)

The only way to decide if your ad is actually working is if you're having good quality conversations.

The lead doesn't matter. How many emails or phone numbers you get doesn't matter.

All that matters is how many good quality conversations are you having.

Are these people genuinely interested?

Now, we don't expect these people to close right off the bat. That is an unfair expectation, depending on how long you've been running ads and how long you've been posting online.

But here's the reality.

If you are running an ad and you're getting a lot of leads, let's say your cost per lead is $10.

You're spending $5,000 a month. You're getting 500 leads for $10 a piece.

You're super excited. You're like, "Yes, this is exactly what I want."

But out of those 500, you're only actually having 20 good conversations.

So in reality, you're not paying $10 a lead.

You're paying $250 per qualified lead. Per qualified conversation.

That is your actual number.

And let's say out of those $5,000, you're only closing two deals.

Then your cost to acquire a customer was $2,500.

So you need to make sure you're optimizing your ads for what's most important.

Which is cost per qualified lead.

Don't worry about the cost per lead. That is just a smokescreen.

It's just a number that you think looks good, but in reality, it just doesn't matter at all.

Here's what most people do.

They look at their dashboard. They see $10 cost per lead. They celebrate.

They don't look at how many of those leads are actually qualified. How many are actually interested. How many are actually closing.

And then they wonder why their ads aren't working.

Your ads are working. You're just measuring the wrong thing.

Stop measuring cost per lead. Start measuring cost per qualified lead.

Because that's the number that actually matters.

If you're paying $10 per lead but only 4% are qualified, you're paying $250 per qualified lead.

If you're paying $50 per lead but 80% are qualified, you're paying $62.50 per qualified lead.

Which one is better?

The $50 lead. Every time.

So here's what you need to do.

Track your qualified leads. Not your total leads.

How many people are genuinely interested? How many are showing up to calls? How many are asking good questions?

That's your real cost per lead.

And if that number is too high, you need to fix your targeting. You need to fix your messaging. You need to fix your qualification process.

But you can't fix what you don't measure.

So stop celebrating cheap leads. Start celebrating qualified leads.

That's the only number that matters.

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