MarketingBiteSize 101 – How to calculate CPA?


One of the most common topics that came up, especially for a start-up company drafting a financial model, is CPA (cost per acquisition), and CPL (cost per lead).

Cost Per Acquisition (CPA) is the cost of acquiring your user, that typically involved a user transaction, meaning the user making a purchase of your product or a service, a successful sale.

Cost Per Lead (CPL), on the other hand, is the cost acquiring a contact, an email address for example, a potential customer in the future.

Depending on the nature of your business, you might want to consider including cost per lead as an ROI variable. Your service or product might be a high-ticket item such as a camera. Typically a website browser will not buy a camera online at first browse. He might be browsing your camera website, along with multiple other websites, but he likes what your…

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