Tip #3: Don’t blindly accept client acquisition costs from your marketing agency
Kelly Waltrich
August 19, 2024
Are you happy with what you’re paying your marketing agency for leads? For leads that convert to clients?
If you answered ‘yes,’ – why?
I’ve spoken with a number of prospects recently who have no problem paying what we know are exorbitantly high cost-per-lead and client acquisition costs – simply because they don’t know any better.
On one particular call, we realized this prospect was paying a staggering 10 times more than their peers for the same quality of leads.
This tells me one of two things is happening:
- Either the agency has no idea how to optimize CPL and client acquisition cost (CAC)
-OR- - The agency is taking advantage of them.
This is why it’s so wildly important to understand the CPL and CAC benchmarks for the types of clients you’re trying to attract, especially if you’re outsourcing your digital marketing.
At the minimum, be able to answer these questions:
- What should you be paying for a lead?
- What percentage of those leads should you expect to convert if you, along with your agency, are running a well-optimized marketing engine?
In my in-house marketing leadership roles, I always held my team accountable to meeting or exceeding the benchmarks of metrics that actually matter. I think it’s even more important for us to do the same thing at Intention.ly. Firms trust us with their growth goals and their budgets – it’s our obligation to do what’s best for them.
Kelly Waltrich is Co-Founder & CEO of Intention.ly. Contact her with question.
