Often abbreviated as CPL, cost per lead, is an effective online advertising pricing model, where the advertiser pays for an explicit sign-up from a visitor interested in the ad’s offer. It is also commonly referred to as the online lead generation.
Some advertisers pay to receive information for a lead or a contact known to have interest in the company’s product. To generate leads, advertisers place forms on certain websites. Website visitors can fill out their personal information on these forms, and are converted to leads because they show interest. For every visitor that fills out a form on a website, the advertiser pays a fee to the owner of that site. This fee is the cost per lead.
This fee is crucial to the conversion stage of the inbound methodology as it is a way for advertisers to pay to generate leads through specific forms.