A lower price per inquiry does not automatically make a lead source more profitable. The result depends on how many inquiries become jobs, what those jobs earn after direct costs, and what your business spends to win and deliver them. Start with your own figures and keep assumptions visible.
Keep the units consistent
Cost per lead is lead spend divided by inquiries received. Acquisition cost per won job is that same spend divided by jobs won from those inquiries. Close rate is won jobs divided by the relevant inquiry group. Use one defined group and allow time for the sales cycle to finish. Mixing this month's spend with unrelated jobs completed this month can produce an appealing number that does not describe the channel's performance.
Work through a hypothetical example
Suppose a contractor buys 100 leads at $75 each, spending $7,500. A 15% close rate produces 15 jobs. If each job brings $3,000 in revenue, total revenue is $45,000. At a 35% gross margin, those jobs generate $15,750 in gross profit before lead spend. Subtracting the $7,500 leaves $8,250 after lead spend and before overhead and other costs. Lead acquisition cost is $500 per won job. These figures are an illustration, not Outlast Leads pricing, a market benchmark, or a forecast.
Check what your margin includes
Use gross margin, not markup. For this calculation, a 35% gross margin means 35 cents of each revenue dollar remain after the direct job costs included in your records. Identify those costs consistently, such as materials, field labor, and subcontractors. Then account separately for costs that remain outside the figure, including office overhead, sales time, travel for unsuccessful estimates, and any other acquisition costs. The example's $8,250 is not net business profit.
Test the assumptions before increasing volume
Repeat the calculation with a lower close rate or a smaller average job to see how sensitive the result is. Track actual job value and gross profit where available, rather than assuming every sale matches the average. Keep open estimates separate until their outcomes are known. Finally, consider capacity: a channel that looks attractive on paper can still create delays if your office or crew cannot handle more work. Base your next spending decision on completed outcomes and a schedule your business can support.