Inexpensive and Responsive
If you are not using Facebook for leads, you should! Our experience at Local Leads Live is that it is possible to generate high-quality leads on Facebook. The cost is very low. The number of leads is only moderate, but they are definitely worth the cost.
Following are the results from a recent sampling of Facebook ads
| Leads | Reach | Cost | Cost Per Lead | Click Percentage | |
| Boosted Posts | 155 | 6642 | $155.00 | $1.00 | 2% |
| General Ad Using Facebook Form | 316 | 12128 | $183.00 | $0.58 | 3% |
| Total | 471 | 18770 | $338.00 | $0.72 | 3% |
The sampling used two types of Facebook ads: boosted posts and general ads using Facebook Form. Over the time period, we generated 316 leads from general ads at a cost of $0.58 per lead. We also paid to have the ad boosted at the cost of $1.00 per lead received. Averaging the two of these Facebook ads together results in a cost of $0.72 per lead.
In the service industry where it is often profitable to pay $100 or more for a quality lead, $0.72 is a phenomenal bargain. How did these perform?
As always, there are many factors that can have a big impact on the cost per lead.
- Target audience can have a big impact in the number of leads and the conversion of leads to customers. Testing and selecting the best target audience produces more and better leads.
- Results can vary significantly between types of businesses being advertised.
- The length of time that an ad is being boosted is an important factor.
- The strength of any promotion in the ad influences the number of leads.
The reach of the ads has value, even for those who do not respond. Each ad view is a customer advertising exposure. Like driving past a billboard, hearing and seeing a media ad, or delivering an email to an inbox, increased ad exposure builds business familiarity over time. Familiarity builds trust and mindfulness which are critically important factors to a consumer in need of infrequent and often emergency service needs.
Developing and placing an ad on Facebook comes with a cost as well. Independently writing copy, designing, and placing an ad can be prohibitively expensive. Local Leads Live typically addresses the cost of ad development by re-purposing emails, blog posts, web pages and other existing marketing materials.
We can’t guarantee that we can produce a significant quantity of quality leads for less than $1.00 each. We know nothing like this happens often. But we can always produce quality leads at a reasonable price, and they will produce the kind of new revenue you need to make your business grow.
