From ad spend to booked jobs: the simple math every owner should know
Cost per lead isn't the number that matters most. Here's how to work out what a booked job actually costs you — with a worked example.
Ad platforms love to report cheap clicks and cheap leads. But you don't get paid for leads. You get paid for jobs. So the number to watch is what each booked job costs you.
The three numbers you need
- 1Cost per leadAd spend ÷ number of leads.
- 2Booking rateHow many of those leads book a call or appointment.
- 3Close rateHow many booked appointments turn into paying jobs.
A worked example (made-up numbers)
Say you spend $30 a day on ads — about $900 a month — and get 90 leads. That's $10 per lead. If 40 of them book and you close 15, each job cost you $60 in ads. If your average job is worth $800, that's a strong return.
Now imagine half those leads never got a reply. Same ad spend, roughly half the jobs — and your cost per job doubles. Nothing about the ads changed; the follow-up did.
Before you raise your ad budget, make sure every lead gets a fast reply and a few follow-ups. It's usually the cheapest way to lower your cost per job.