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Cost per Lead and Cost per Click

Over the last couple of decades marketing has seen a significant transformation because of the Internet, revolutionising techniques and creating many more options for companies to explore. And something that has become a major benefit since the shift online, is measurability.

No matter how you spend your time marketing your company, there are plenty of easy-to-use tools available to calculate how effective certain marketing messages are. This could be through advertising, email send outs or even monitoring affiliate activity.

With these transparent tools brings full responsibility for everyone involved. The excuse of agencies claiming it to be the product’s fault a campaign isn’t working is eliminated. In the age of digital marketing we can quickly assess what does and doesn’t work, and above all, why?

This has spawned two marketing techniques: Cost per Lead and Cost per Click.

It doesn’t take a genius to get the idea simply from their names, and they’re two of the very best ways to drive traffic to your website. Both offer a chance to control your budget, keeping the Financial Director happy, whilst also minimising the risk factor.

Cost per Lead

On most occasions, the company would only pay when they’ve received a completed form with validated contact information. There would be a set fee for each verified form collected and this form of marketing works very well with affiliates and partners.


  • You’re able to target specific customers with your form
  • Quality leads will equal a higher conversion rate
  • You have better control and will receive more information

Cost per Click

Every time a unique visitor clicks a link to the website, the company will pay out a set fee, which tends to be smaller than for Cost per Lead (depending on the campaign). This is where PPC comes into effect and you’ll often see campaigns on the right side of your Google listings.


  • You’ll receive a higher number of potential customers
  • Cost per Click will be cheaper for every unique visitor
  • You’ll be in a position to manage your own visitors and form.

Of course, the route you go down will be entirely dependent on a number of factors such as your target market and how high conversion rates tend to be. If you’re looking for the safest bet, then Cost per Lead is the better option for you as it’s easier to control and you’re guaranteed a potential customer with every payment made.


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Tom Crosswell

I have been managing online projects since 1999 and I'm a experienced marketeer, who is well versed in international brand management, online business strategy and developing long term relationships. Through my academic and professional background I am a specialist in generating online loyalty towards brands. My experience has taught me that ultimately business is about relationships and people. For more information see my Google+ page.

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