Understanding your cost per lead (CPL) is absolutely fundamental to profitable growth. Too many Australian small and medium enterprises operate ‘in the dark’ with lead generation, hoping for the best without knowing if their investment is actually delivering results. We’ve analysed data across several key industries to give you a realistic picture of what you should expect to pay for a lead right now.
It’s important to remember CPL isn’t a fixed number. It fluctuates based on competition, seasonality, your targeting precision, and the quality of your lead magnet. However, these ranges provide a solid benchmark for planning your marketing budget.
- Financial Services (Mortgage Brokers, Financial Planners): Expect a CPL between $80 and $250. This sector is highly competitive, and leads often require significant nurturing.
- Trades (Plumbing, Electrical, HVAC): Generally, trades see a lower CPL, ranging from $40 to $120. Local service ads and targeted Facebook campaigns perform well here.
- Retail (Online & Brick-and-Mortar): CPL varies hugely depending on product margin. Expect $20 to $80 for lower-priced items, and potentially $100+ for higher-value goods.
- Healthcare (Dentists, Physiotherapists): CPL typically falls between $60 and $180. Google Local Services Ads are particularly effective, but can be competitive in metro areas.
- Building & Construction (New Homes, Renovations): This is a high-intent, high-value sector. CPL can range from $150 to $400+, reflecting the longer sales cycle and larger project values.
These figures represent fully qualified leads – meaning someone who has expressed genuine interest in your services and provided contact details. Don’t confuse this with ‘impressions’ or ‘clicks’, which are far cheaper but don’t guarantee a potential customer. We’re seeing a trend towards increased CPL across the board as advertising platforms become more crowded, so optimising your conversion funnel is more critical than ever.
To truly understand *your* CPL, you need to meticulously track your marketing spend and the leads generated from each channel. Implement proper attribution modelling to identify which campaigns are delivering the best return. If you’re unsure where to start, a lead generation audit is a great first step to pinpoint areas for improvement and ensure your marketing budget is working as hard as it can.
