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.

Average customer revenue ($)Gross margin (%)Lead-to-sale close rate (%)Target marketing share of gross profit (%)

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.