In the MCA industry, success often boils down to one key metric: Cost Per Acquisition (CPA) the amount it costs to secure a single new client. Over the past 13 years, the average CPA in the MCA space has hovered around $1,000 per deal. However, some brokers are achieving CPAs as low as $300-$500, thanks to strategic investments in technology, strong lender relationships, and high-quality lead generation.
Historically, the industry average has been one deal per $1,000 spent. This number accounts for the total cost of leads, marketing, and operational expenses. While it’s possible to purchase a lead list for a fraction of that cost and close a few deals, the true CPA becomes clear when you factor in the time, resources, and overhead required to convert leads into funded deals.
Achieving a CPA below the industry average—particularly in the $300-$500 range—requires more than just buying leads. Successful brokers with low CPAs have several critical elements in place:
- Strong Lender Relationships: Cultivating partnerships with reliable lenders increases the likelihood of converting applications into funded deals.
- A High-Performing Sales Team: A knowledgeable and motivated team ensures leads are handled efficiently and persuasively.
- Advanced Technology: CRMs and automation tools enable brokers to maximize their outreach efforts through repeated calls, texts, and emails.
- Quality Leads: Working with reputable lead providers who deliver targeted, high-intent prospects is essential to minimizing acquisition costs.
One broker recently conducted a diagnostic test on leads purchased from multiple providers, examining everything from applications submitted to default rates and funded deals. The goal? To determine the true cost of each acquisition. This exercise highlights the importance of tracking your CPA as a measure of efficiency and profitability.
If your CPA is $1,000 per deal, you’re in line with the industry average. However, brokers achieving 2-3 funded deals per $1,000 spent are setting themselves apart as leaders in efficiency. By consistently analyzing CPA, you can identify which lead sources and strategies are driving the best results.
CPA is a crucial metric that can reveal the effectiveness of your sales funnel and the quality of your leads. While the industry average CPA is $1,000, many brokers are achieving significantly lower costs by leveraging strong systems, technology, and lead providers. If you can optimize your processes and secure a CPA between $300 and $500, you’ll not only boost your ROI but also position yourself as a top performer in the competitive MCA market.