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Cost Per Lead (CPL) Defined

Cost Per Lead (CPL) is a way businesses pay for ads only when someone shows real interest. Instead of paying every time someone sees or clicks on an ad, the business pays when a person takes an action, like filling out a form, signing up for a newsletter, or asking for more info.

This helps businesses get contact details from people who might want to buy something later. These are called “leads.” They are not customers yet, but they are interested.

CPL is a smart way to spend ad money because you are only paying when someone actually does something. It is great for businesses that need to follow up with people before they buy, like real estate, online courses, or software companies.

How to Use it in a Sentence

We ran a Cost Per Lead campaign to collect email sign-ups, so we only paid when someone actually filled out the form.

Common Cost Per Lead (CPL) FAQs

A lead is usually someone who gives you their contact information, like their name and email address, often through a sign-up form, contact form, or download page.

A “good” CPL depends on your industry and what your leads are worth. For example, a software company may be willing to pay more per lead than an online store because the value of each customer is higher.

You can lower your CPL by improving your ad targeting, using clear messaging, creating better landing pages, and making it easier for people to sign up or fill out your form.

CPC (Cost Per Click) means you pay every time someone clicks your ad, even if they don’t take further action. With CPL, you only pay when someone becomes a lead by doing something specific, like sharing their contact info.

You can run CPL campaigns through ad platforms like Google Ads or Meta Ads. After collecting leads, you can use messaging platforms like OneSignal to follow up through push notifications, email, or in-app messages. These tools help you stay connected with leads and track how well your campaigns are performing.