Paid Per Lead Costs Increasing
All of my pay-per-lead providers are trying to increase their prices.
I'm tempted to drop providers who demand increases.
I know this may be irrational because pay-per-lead is relatively cheap in comparison to other marketing channels.
I'm curious to know how the rest of you are approaching this issue.
Thanks!
I would strongly encourage you not to drop those advertisors! Your CPS for the pay per lead may not be as good as your SEO or PSM CPS, however it is likely significantly lower than your other media.
The only way to look at this is to evaluate the each vendor's proposed increase on a CPS basis to see if it makes sense. If it takes you higher than other media the answer is no. If you can get more volume or maintain what you have and the CPS makes sense the answer is yes.
Cost is a factor in almost all pay per lead algorithms for site placement. It is important to not let that drop off for your best performing CPS media.
I have my dept. negotiate with the cpl vendors if they are wanting to increase cost. we look at the conversion rates of that source, starts, grads, etc.
if the cost is warranted - pick and choose your battles.
if the increase does not coincide with good conversions, etc - share your %s with the vendors...ask for their help in increasing the conversion rates, and you may be able to compromise a transitional period. While working to increase the conversion rates, the cost remains the same - at the end of trial/test period, re-evaluate.
we have had success with this - hope this helps!
I agree Holli! It is very important to share conversion numbers and start data with your vendors so they can make changes based on the data and that those changes are ongoing.
When Vendors demand increase in CPL we usually negotiate the price based on our performance. We let them know the reasons all of their leads were bad, so that they can better optimize their campaigns and that they know exactly what we're looking for.
