The Game with Alex Hormozi How to get Cheaper Leads | Ep 246
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Oct 30, 2020 Discover the essential elements that determine your cost per lead, including CPM, CTR, and CPC. Alex shares insights into how understanding these factors can significantly enhance your marketing strategy. He emphasizes the importance of knowing platform dynamics and market competition when running paid ads. Tune in for valuable tips on acquiring customers more effectively and efficiently.
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Cost per Lead Breakdown
- Three factors determine cost per lead: CPM (cost per thousand impressions), CTR (click-through rate), and conversion rate.
- These factors interact; a higher CPM with a higher CTR and conversion rate can be cheaper than a lower CPM with lower rates.
Comparing Campaigns
- Alex compared two campaigns: one with higher CPMs but also higher CTR and conversion, and another with lower CPMs but lower other rates.
- The lower CPM campaign ended up being more expensive overall, highlighting the interplay of the metrics.
Campaign Diagnosis
- Diagnose campaign issues by analyzing CPM, CTR, and conversion rates individually.
- Focus on fixing the weakest metric first to improve campaign performance.