For fitness leads, industry standard cost per lead on Meta’s platforms – Facebook & Instagram – is between $15-25.
What accounts for the variance?
- Quality of ad. If your ad isn’t doing a good job of getting attention, and giving your prospects a compelling reason to enter their details, the cost per lead will be higher. Ideally your Cost Per Link Click on your ads should be below $2, but below $3 is acceptable.
- (As a caveat to this, if you’re intentionally disqualifying leads by asking them to answer questions in your forms or in your initial offer, your cost per lead will be higher. This is a bet you’re willing to take that while the leads may cost more, you’ll convert at a higher rate, thereby either saving time or making more return on your ad spend.)
- Market saturation: More competitors in your ad space means it will cost more to get in front of your target audience. If your Link Click Through Rate is below 0.50%, you’re in a tougher market.
- Market fatigue: If your audience has been burned before by bait and switch marketing, shifty promises, or just too much of the same type of advertising, the cost will go up.
Some markets pay above $30/day per lead and still make a positive ROAS (Return On Ad Spend). Other markets are “lucky” and they get leads for under $10, sometimes under $5.
By the way, I’ve used U.S. Dollars in this example, but the figure holds largely true for Europe, Australian/Canadian Dollars, and British Pounds Sterling too.
Ultimately, the most important question you should ask is “Did I generate more revenue in new client sales than I spent on marketing?” If yes, you’re acquiring customers and are cash flow positive. If no, look at your response-set-show-close rates and lead generation.