How to Price Meta Leads Without Killing Margin
A simple margin model to decide maximum CPL by niche, close rate, and average job value.
Start with contribution margin
Your true lead budget is constrained by what each won job contributes after delivery cost.
Use this formula:
Max CPL = (Average Job Value x Gross Margin x Lead-to-Win Rate) x Safety Factor
Use a safety factor between 0.6 and 0.8 to account for volatility.
Example
- Average job value: £7,500
- Gross margin: 42%
- Lead-to-win: 4%
- Safety factor: 0.7
Max CPL = 7500 x 0.42 x 0.04 x 0.7 = £88.20
If your qualified CPL is above this for multiple weeks, something must change: price, conversion, or targeting.
Segment by service line
Do not use one CPL target across all services.
- Emergency repair can support higher CPL due to speed and intent.
- High-ticket installs need lower wasted lead share and stronger sales process.
Cost controls that do not choke growth
- Exclude poor-fit areas.
- Tighten qualification fields.
- Pause weak creative quickly.
- Reallocate budget weekly, not monthly.
Use two CPL targets
- Raw CPL to monitor platform efficiency.
- Qualified CPL to monitor actual pipeline health.
Qualified CPL should guide decision-making.
Bottom line
CPL targets without margin context create false confidence. Build targets from contribution economics and update quarterly.
⚠ Important Disclaimer
This guide is for general informational and educational purposes only. It does not constitute professional advice of any kind.
Before making business decisions: Consult qualified professionals who can assess your specific circumstances.
ServiceLeads and the article authors accept no liability for decisions made based on this guide.
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