There are so many factors that go into determining the price of a lead in a Facebook campaign.

The first step is understanding the difference between a prospect and a genuine lead.

For me, a genuine lead in Facebook campaigns has three qualities:

1️⃣  Full name and the ability to contact

2️⃣  Two-way dialogue

3️⃣  Intent to do business

If any of these are missing, I consider it a prospect, not a genuine lead.

Now, onto the factors that actually determine price:

1. Quality of the advertising
The better the copy, creative, and call to action → the less we pay per lead.
The worse they are → the more we pay.

2. Qualifying criteria
Simple Facebook lead form → cheaper cost per lead, but lower conversion rates.
Landing page + 20-question quiz → higher cost per lead, but higher conversion rates too.

3. Target of the advertising
Deals that convert faster = more expensive leads.
Deals that convert slower = cheaper leads.

Example:

– First home buyer lead → $30 each

– Debt consolidation refinance lead → $60 each (but converts faster)

Quick maths on ROI:

• $30 per first home buyer lead

• 10 leads = $300 

• 10% conversion → 1 settled deal

• $500K loan size @ 0.6% upfront commission → $3K income in ~4 months

That’s a 10x return — as long as we can handle the cash burn while we wait for settlement.

Written by Sam Panetta the BROKER COACH helping mortgage brokers build valuable businesses.