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.
