This calculation is based only on a good cost per lead from the initial revenue of the deal. You should also consider the overall lifetime value of acquiring a new customer. So, while you may realize that you break even in the first year with a new customer, you will know that the ROI comes in the second year when they renew or when they place their second order with you.
Good price per lead
If you run the numbers and find that you’re paying too much per luxembourg phone number list lead in Google Ads, you should evaluate how best to lower that cost. Just because your cost per lead is currently too high doesn’t mean you should quit Google Ads and put your money elsewhere. It just means it might be worth rethinking your strategy.
1. Check if your campaigns are limited by budget
When you look at your Google Ads account, you may notice that some ad groups have a “Limited by budget” warning. This means that your bids are high enough to be included in the auction for Google Ads space, but you won’t be included in many auctions each day because of the restrictions you’ve placed on your ads.