Cost per Lead (CPL) measures the average spend required to generate one new prospective agent lead from marketing and advertising. It helps brokerages compare channel efficiency, budget allocation, and lead quality across campaigns. For example, if you spend $2,000 and generate 100 agent leads, your CPL is $20. CPL should be evaluated alongside downstream metrics like application rate, interview rate, and cost per hire to ensure you are financing leads that actually convert.
Formula: CPL = Total Lead Gen Spend ÷ Number of Leads
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