LinkedIn is a powerful tool for B2B lead generation. It’s estimated that over 80% of B2B leads come from the platform, making it an essential part of any marketing strategy. But what is a good cost per lead (CPL) for B2B? Let’s explore the potential of LinkedIn as a lead-generating platform and learn how to calculate CPL.
Why Use LinkedIn for Lead Generation?
LinkedIn has more than 660 million users and is home to many of the world’s most influential professionals. This makes it one of the best places to find potential customers and build strategic relationships with industry leaders and influencers. Brands have been able to generate qualified leads through content marketing, organic reach, sponsored posts, and targeted advertising on the platform. In fact, according to one study, 63% of marketers stated that LinkedIn was their most effective source for generating quality leads.
Calculating Cost Per Lead (CPL)
Your CPL is calculated by taking your total ad spend and dividing it by the number of leads you generated from that ad campaign. For example, if you spent $300 on an ad campaign and generated 30 leads from it, your CPL would be $10 ($300/30). Your CPL can vary depending on which tactics you use for lead generation; for example, using email campaigns or PPC ads can yield different costs per lead than organic outreach or content marketing efforts. It’s important to keep track of your CPL so you know what works best when trying to generate new leads on LinkedIn.
Good Cost Per Lead (CPL) Range
The average cost per lead in 2020 was around $70-$80 – however this varies greatly depending on industry and vertical. Generally speaking, companies should aim for a CPL that is no higher than 20% of their Average Customer Lifetime Value (CLV). For example, if your CLV is $1000 then you should aim to stay within a maximum cost per lead range of $200 or lower in order to maintain profitability over time.
LinkedIn has become an invaluable resource for businesses looking to generate quality B2B leads at an affordable price point. With over 80% of B2B leads coming from the platform, it’s important that businesses understand how to calculate their CPL in order to ensure they are staying within their budget while still generating enough quality leads for their business needs. By keeping track of their CPL and aiming for a maximum rate that is no higher than 20% of their Average Customer Lifetime Value (CLV), businesses will be well poised to take advantage of all that LinkedIn has to offer in terms of B2B lead generation opportunities!
