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Affiliate marketing glossary / PPL (pay-per-lead)

PPL (pay-per-lead)

What is PPL ( Pay-per-lead)?

A PPL (pay-per-lead) is when a business pays a fee for each new client that is acquired by their own efforts or the efforts of affiliate partners.

How Does Pay-per-lead Work?

There are many types of pay-per-lead programs, and it’s important to understand the variations, so you don’t end up paying more than you expected or end up with a poor experience. First, let’s look at the basic formula: The marketer pays the lead generation company X amount for every qualified lead that the company brings in. As you can see, there are a few things to note here. First, “Marketer” refers to you — the business owner. You’re paying for the leads, so you’re the one who chooses how much to spend. Second, a “lead generation company” is the business that actually brings in the leads. This could be an online marketing firm, direct mail company, or a call center, depending on the type of PPL program you choose. Third, “qualified lead” refers to a potential customer who meets your business’s criteria for a sale. As for the X amount, this is referred to as the “bid” or “payout.” The amount you pay for each lead will vary depending on the type of PPL program you choose.

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