Cost Per Lead vs. Cost Per Funded Deal: The Metric MCA Teams Keep Getting Wrong
When evaluating marketing performance, many MCA teams immediately look at one number: cost per lead. It makes sense. The metric is easy to track and compare, and it is often used to judge whether a campaign is performing well. But there is a problem. A low cost per lead does not automatically mean a campaign is successful. If those leads fail to turn into meaningful opportunities, the savings on lead costs may not translate into actual business results. That is why focusing on cost per lead alone can create a misleading picture of marketing performance. Why Does Cost Per Lead Get So Much Attention? Cost per lead helps providers understand how much they are spending to generate inquiries. On the surface, lower costs seem like a win. For example, one campaign may generate leads for $20 each, while another produces leads at $40 each. At first glance, the $20 leads appear to be the better investment. However, lead costs only tell part of the story. They do not reveal whet...