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The Detcord Lab · Tool 001

What is a lead actually worth?

Stop guessing at CPL. Start with the economics of a customer and work backward.

Target max CPL$120

Based on your inputs.

GOAT NOTE

The formula matters more than the benchmark.

Generic “average CPL” charts ignore your close rate, economics and margins. A lead can be expensive and profitable—or cheap and worthless. The useful question is how much you can pay while preserving the economics you want.

Formula: customer revenue × gross margin × close rate × target marketing share of gross profit.

This is a planning model, not a guarantee. Real acquisition economics also depend on sales capacity, repeat purchases, refunds, overhead and lifetime value.

Read the default example

The default inputs use $5,000 revenue, a 40% gross margin, a 20% close rate and a 30% marketing allocation. That produces a $120 planning ceiling per lead. These are illustrative inputs, not Detcord client results or industry averages.

Stress-test the assumptions

If the close rate falls to 10% while other inputs stay fixed, the ceiling falls to $60. If gross margin falls to 20% as well, it becomes $30. Use your own revenue and accepted-lead close rate, and review the range with the person who owns the numbers.

See the worked marketing ROI guide for the difference between revenue, gross profit and acquisition cost.