Cost Per Lead (CPL)

Cost Per Lead (CPL) is an online marketing term used in connection with the Pay Per Lead advertising payment model. With the Pay Per Lead (PPL) payment agreement, a company only pays for new leads—not for clickthroughs or impressions.

"Leads" are created when a potential customer clicks on an ad for your company, gets to the landing page, and fills out a contact form requesting more information, a quote, a phone call, or something similar. Activities like signing up for an email newsletter or registering as a guest do not normally constitute a true "Lead."

The information you get about potential customers from a Pay Per Lead (PPL) ad usually includes their name and some form of contact information (email, phone, etc.). It may also include information about what the potential customer is interested in, which can be helpful in sorting out leads.

Cost Per Lead (CPL) refers to how much money a company pays an advertising company or publisher every time a new lead is generated. Cost Per Lead may also be used (incorrectly) for the Pay Per Lead advertising payment model itself.