Cost per lead (CPL)
Also known as: CPL, cost per qualified lead
Marketing spend divided by qualified leads generated. The headline metric for paid acquisition channels. Should be evaluated alongside close rate to derive true cost per acquired customer.
Cost per lead (CPL) measures how much marketing spend is required to generate a qualified lead. Calculated as: Total marketing spend / Number of qualified leads.
CPL varies dramatically by channel. For residential trades: Google Business Profile $5-$15 (organic); Google Local Service Ads $50-$140 (pay-per-lead); Google Search Ads $30-$80 (after click-to-lead conversion); Facebook ads $20-$60; direct mail $80-$200; HomeAdvisor/Angi $30-$80.
CPL alone is misleading. The relevant decision metric is cost per acquired customer (CPL ÷ close rate). A $40 lead that closes at 8% costs $500 to acquire; a $120 lead that closes at 50% costs $240 to acquire. The 'expensive' channel is actually cheaper.
For service operators, accurate CPL tracking requires: source attribution at lead capture (which channel did this lead come from?), distinguishing 'qualified' from total leads (a lead that's outside your service area or asking about services you don't provide isn't a qualified lead), and pairing with close-rate data per channel. Without these, CPL numbers can mislead allocation decisions. Most operators benefit from focused tracking over a clean 90-180 day window to establish accurate per-channel CPL and close rates before adjusting allocation.
Related terms
Google Business Profile (GBP)
Google's free business listing that appears in search results and Google Maps. Includes business info, reviews, photos, posts. The single highest-leverage organic channel for local service businesses.
Schema markup (structured data)
JSON-LD or microdata code added to web pages that helps search engines understand page content. Required for many rich-result features (review stars, FAQ accordions, business info).