Are You Tracking Your Cost Per Lead?

May 2nd, 2008 Tim White Posted in Conversion Tracking, Google, Lead Capture Pages, Pay-Per-Click Marketing, Yahoo! |

One of the most powerful yet overlooked tools that Google and Yahoo! offer is conversion tracking. This tool can very accurately tell you how much you are paying per lead or sale.

Most advertisers spend too much time worrying about what they are paying per click rather than per sale or lead. Of course you want to keep your cost per click as low as possible, however, conversion tracking helps you determine how aggressive you can be (per click) and still be profitable. For example, if you don’t know how much a lead or sale costs you, you might be bidding conservatively to keep your costs down. But what if you doubled your average cost per click and tripled your profits? Wouldn’t you want to do that as much as possible?

Your average cost per click is only one factor in determining your cost per lead or sale. Another component that’s just as important, if not more, is the landing page (or web page) you are sending your visitor to with the Google or Yahoo! ad. Most advertisers send the user to their home page thinking that’s what makes the most sense. Most of the time this is a mistake and keeps your cost per conversion much higher than it needs to be.

Feel free to contact us for a free consultation on implementing Google or Yahoo! conversion tracking or reducing your cost per lead or sale.

Tim White is the founder of WhizClick and has been marketing online since 1994. He can be reached at tim@whizclick.com or 916.799.3999.