What’s the Cost Per Lead on LinkedIn? (Outreach vs Ads)
When you're figuring out the cost of lead generation on LinkedIn, the tactics you choose play a huge role. Let's break down the cost per lead through two main methods:
- LinkedIn Outreach
- LinkedIn Ads
Now, let’s dive in!
What’s the Cost Per Lead for Cold LinkedIn Outreach?
The most budget-friendly option for generating leads on LinkedIn is cold outreach. While this often includes both email and LinkedIn, we'll focus solely on LinkedIn here.
To run a successful lead generation campaign on LinkedIn, you’ll need two essential tools:
- LinkedIn Automation Tool ($99/month)
- LinkedIn Sales Navigator ($139/month)
Total cost: $238/month per user
With this setup, your team should be able to book around 30 qualified meetings per month, bringing the cost to approximately $7.90 per meeting.
These two tools provide everything you need to start generating leads on LinkedIn. It's by far the most affordable approach if you're just getting started. However, keep in mind that while the tools themselves are cost-effective, you’ll need a dedicated person on your team to manage the outreach. If you plan to scale, factor in the cost of hiring or assigning this role.
What’s the Cost Per Lead for LinkedIn Ads?
LinkedIn Ads have surged in popularity over the past few years, becoming one of the go-to platforms for B2B marketers.
But with this increase in popularity comes a more crowded market. And as the primary B2B social network, LinkedIn charges a premium for each click.
- Cost Per Click (CPC): LinkedIn Ads typically charge on a cost-per-click basis, with cost per clicks often ranging between $5 to $15, though it can sometimes exceed $15 depending on your targeting criteria.
- Cost Per Lead (CPL): Given the higher cost per click, the cost per lead on LinkedIn can range from $60 to $120.
This range is an estimate, and the actual cost can be higher or lower depending on how competitive your target audience is. For highly competitive industries or audiences, you might see cost per lead that exceed $120.
While these figures might seem steep compared to other platforms like Google or Facebook, LinkedIn’s targeting options can justify the expense since you can target specific job titles, industries, company sizes, and more, ensuring your ads reach the decision-makers most likely to convert.
How to Reduce the Cost of Leads on LinkedIn
If you're looking to get more out of your LinkedIn budget, here are a few tactics you can use to lower your cost per lead:
1. A/B Test Ad Formats
LinkedIn offers a variety of ad formats. Set up campaigns for each and see which one delivers the best results.
You might be surprised to find that one format consistently outperforms the others in terms of cost per lead and meeting bookings.
2. A/B Test Messaging
Don’t just stick with one message forever. Continuously A/B test your messaging to find what resonates most with your audience.
The goal is to achieve high connection acceptance rates and reply rates. If you’re wondering what metrics to aim for, we’ve got a detailed article that breaks down LinkedIn metrics and best practices.
3. A/B Test Audiences
Once you’ve nailed your messaging, the next step is to A/B test different audiences. Targeting CEOs of large enterprises may sound appealing, but it can be tough to get on their radar, and expensive.
Consider targeting lower-level employees who still have purchasing power but may be more accessible. Testing different audiences can reveal surprising insights, sometimes uncovering segments that drastically improve your reply and close rates.
If you’re a startup, this is a fantastic way to fine-tune or even discover your ideal customer profile.
Wrapping Up
LinkedIn is a goldmine for lead generation when done right. If you're curious about how to get started with LinkedIn lead generation, check out our detailed guide on how to use LinkedIn for lead gen here.
Good luck, and if you’re in the market for a powerful LinkedIn automation tool, be sure to check out LeadLoft!
