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The Cost of a Facebook Lead

This was one of the two lowest-performing campaigns run this month in terms of the cost per lead (we saw refi leads as low as $3). The other low-performing ad was a custom campaign that we shut down pretty quick, but this one (pictured) came of the tail-end of a 5-minute turkey campaign that we literally created and had published in the time it takes to drink a cup of coffee. It returned leads for $7.48, so returned 9 leads for $67.28.

First, I'm not trying to sell you something. As of January we work exclusively for just one group, so if you called me I'd either turn you away or try and recruit you into our subby. What I'm trying to do is get you to stop buying non-compliant and unethical garbage leads.

What made this campaign interesting, and why it's a first for us (and in absolutely no way typical), is that 8 of the 9 leads converted - resulting in 9.4m in volume... and this was off a spend of just $67.28. Typical conversions are around 30%, so having all but one translate into a file was seriously unexpected... but satisfying given the broker was going through a difficult time (we didn't charge him for the ad, and this morning we received a gift basket - very much appreciated).

You will not and cannot see this return by buying leads. In fact, the same number of 'leads' would have cost you around $1500 and you wouldn't have converted any (because they're crappy leadgen leads).

FB advertising represents around 30% of the volume returned by our brokers. Other programs are much higher yield, but they also require more time. If Facebook leads were women, the quality of the average lead isn't much different to girls you meet hanging out at Caltex toilets, so the experience described above wasn't a typical one, but our brokers still manage to dig deep, find the diamonds, and *convert* at roughly $60 - around half of what you'd pay for a dud lead, and still a small price to pay given the returns.

Moving forward, Belief will support our existing clients and larger franchise groups only. Details of our new venture are forthcoming.

Don't buy leads.

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