‘Cost per lead’ or ‘cost per client’ is a specific calculation that can be made to help understand the value of a lead. It is a common metric used and one of many marketing tips for lawyers. It is important to note that the cost per lead is not exactly equal to the value of a lead. This will be discussed further below. In order to calculate this metric, there are two variables you will need: your firm’s marketing budget & the amount of leads your firm has acquired over a period of time using the budget.
Cost per lead = marketing budget / # of new leads.
Therefore, if for example, you’ve spent $1,000.00 on marketing and it acquired you 5 new leads, your cost per lead will equal $200.00. Now, as a partner of your law firm business, you will know that each newly acquired client will need to bring in more than $200.00 in order for such marketing efforts to be profitable.
