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Pay per lead (PPL) is an online marketing business model in which the advertiser pays for each lead or potential customer generated through a form or registration on its website. The lead is a prospect who has shown interest in the products or services offered by a company, and has left their contact information, or has contacted the company offering the products or services, through a call or email contact. 

The PPL is also known as cost per action or per web conversion, since users must perform a specific action to be counted as a lead within the campaign The conversion must be established by the advertiser. It can be from a contact, an ebook download, requesting a free trial, etc. 

PPL is a very effective form of advertising, since it allows the advertiser to obtain qualified leads, that is, users who have a high probability of becoming customers. A very important characteristic of PPL is that it minimizes the risks of investing in marketing, because if you do not generate leads, you are not generating any expenses (not counting the investment in the advertising platform). 

How is the PPL calculated? 

The PPL is calculated by dividing the total cost of the campaign by the number of leads obtained. For example, if a campaign has a cost of 5000€ and generates 1000 leads, the cost would be 5€ per lead. 

The PPL can vary according to the sector, the type of product or service, the level of competition, the quality of the landing page, the channel of attraction, etc. Generally, the higher the cost of the PPL, the more specific and complex the product being offered. 

What are the advantages of PPL? 

PPL has many advantages for both the advertiser and the lead provider. Some of them are: 

● The advertiser only pays for the leads generated, which allows him to optimize his budget and his return on investment (ROI). 

● The advertiser obtains qualified leads, which have a greater interest and predisposition to buy their product or service.

● The advertiser can segment its target audience according to their demographic, geographic, behavioral, etc. characteristics, and customize its message and offer according to their needs and preferences. 

● The lead provider can offer a quality and guaranteed service, since it only charges for leads that meet the requirements established by the advertiser. 

● The lead provider can diversify its revenue sources and generate a long-term relationship with the advertiser, based on trust and transparency. 

What are the disadvantages of PPL? 

PPL also has some drawbacks to consider. Some of them are: 

● The advertiser must clearly define the criteria for quality and validity of the leads, as well as the method of lead verification and delivery, to avoid fraud or low-quality leads. 

● The advertiser must have a lead management and tracking system in place to contact leads quickly and efficiently and convert them into customers. 

● The lead provider should invest in generating quality traffic to the advertiser's landing page, using different online marketing channels and techniques, such as SEO, SEM, email marketing, social media, etc. 

● The lead provider must design and optimize the advertiser's landing page to be attractive, clear, persuasive and easy to use, and to encourage the user to take the desired action. 

What are some examples of PPL? 

PPL can be applied to different sectors and types of products or services, as long as a specific action can be defined that indicates the user's interest. Some examples of PPL are: 

● An online course that offers a free class in exchange for the user's contact information. 

● A software that offers a personalized demonstration in exchange for the user's contact details. 

● An advisory service that offers a free consultation in exchange for the user's contact details.

● A beauty product that offers a free sample in exchange for the user's contact details. 

What are some tips for implementing PPL? 

PPL is a very effective online marketing strategy, but it requires careful planning and execution. Some tips for implementing PPL are: 

● Establish the objectives and budget of the campaign, as well as the criteria for quality and validity of the leads. 

● Choose the right lead provider, who has experience and reputation in the industry, and who offers a transparent and guaranteed service. 

● Define the campaign's target audience, and segment it according to its characteristics and interests. 

● Create an irresistible offer, which provides value and solves a problem or user need. 

● Design an attractive landing page that captures the user's attention and interest, and invites them to take action. 

Use a simple form that asks only for the essential data, and that offers security and confidence to the user. 

● Measure and analyze campaign results, and make necessary adjustments to improve performance and ROI. 

Conclusion 

Pay per lead is an online marketing strategy that consists of paying only for leads generated through a form or registration on your website. PPL has many advantages, such as optimizing the budget, obtaining qualified leads, segmenting the target audience and personalizing the offer. However, it also has some disadvantages, such as defining the quality and validity criteria of the leads, having a lead management and tracking system, investing in generating quality traffic and designing and optimizing the landing page.

PPL can be applied to different sectors and types of products or services, as long as you can define a concrete action that indicates the user's interest. To implement PPL, a series of tips should be followed, such as establishing the campaign objectives and budget, choosing the right lead provider, defining the campaign's target audience, creating an irresistible offer, designing an attractive landing page, using a simple form, and measuring and analyzing the campaign's results.

I hope this blog has helped you to learn more about pay per lead and how it works. If you have any questions or comments, you can write to us and we will respond as soon as possible. 

We work with Pay Per lead, you can see here our policy in a transparent way.