What is a lead actually worth?
Stop guessing at CPL. Start with the economics of a customer and work backward.
Based on your inputs.
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.