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Lead buying Playbook

Cost per acquisition, not cost per lead

A step-by-step method for working out what you can genuinely afford to pay per enquiry.

Lead Magnet Group 10 min read Published Last updated

For owners and finance leads setting a lead budget

Most firms set a lead budget by feel and then argue about CPL. Do it the other way round: start with your gross margin and work backwards to the highest price you can rationally pay.

1 Step one: know your true job margin

Take an average job value, subtract materials, labour, subcontractors, scaffolding, warranty provision and finance costs. What is left is what marketing can spend from.

2 Step two: measure the funnel you actually have

Stage Your rate Worked example
Leads received — 100
Contacted × 82
Survey / appointment × 27
Quoted × 24
Sold × 8

3 Step three: do the arithmetic

  • Gross margin per install: £1,800
  • Target marketing share of margin: 25% → £450 per install
  • Installs per 100 leads: 8 → 100 leads may cost up to £3,600
  • Maximum sustainable CPL: £36

4 Step four: review monthly, by vertical and postcode

  • Track cost per install by vertical, not blended
  • Split by postcode group — travel time changes the maths
  • Separate new-lead spend from re-quote and referral work
  • Kill any source that misses target two months running

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