Why Do Lead Costs Differ Between Each Marketing Channel?

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Every marketing channel will have different costs associated with them, from lower minimum costs to higher costs per lead. Some channels might be cheaper, but have lower ROIs or cannot be scaled.

Clients in the same industry have experienced ROIs that are drastically different. Two of the common denominators are how much they are charging clients and what their conversion rate is.

Should you cut out a channel with a lower ROI?

You have to look at the ROI for your exact situation and see if the ROI is profitable for each channel. If a channel is profitable, then continue to use it.

If it is borderline in profitability, then you have to figure out if it influences other channels. Does it get you referrals that help the overall costs come down?

In the end, the reason you do multiple avenues of marketing is to get more volume and grow your business. You may employ 5+ marketing tactics, and they all get you a different ROI, but you use them all to increase your revenue. Some channels you will not be able to scale, and others you will be able to scale. You have to look at your business and where your profits are to see if each channel makes sense.

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