Article 2: Lead Price vs. CPA — Don’t Let Discounts Destroy Your Business
Last week, I had several conversations with MCA brokers looking for fresh leads. These were brokers I’ve worked with in the past — professionals who had already seen great returns from leads they bought from me. But this time, they were calling with a different tone. They were asking for discounts.
When I explained that my prices had not changed — and that my leads still outperformed industry averages — a few responded with, “We’re going to buy cheaper leads from someone else.”
That’s the kind of thinking that can quietly kill a business.
Too many brokers focus on the price per lead when what actually matters is CPA — cost per acquisition. Let’s be honest: what good is a $10 lead if you have to burn through 300 of them to get one funded deal? That’s $3,000 per acquisition. That’s not sustainable.
Over the last 13 years, I’ve studied this industry from every angle. I’ve seen what it really costs to bring in a funded MCA deal. The average CPA across the industry typically falls around $1,000. And that’s for brokers who are organized, have solid tech, and know how to close. For the best-performing teams I work with — those who use CRMs effectively, route leads to the right reps, and follow up relentlessly — the CPA drops to $300–$500. Those are numbers that support long-term success.
The brokers who beg for discounts are often the same ones who jump from lead provider to lead provider, always looking for a better “deal” while their close rates plummet. It’s not about paying less per lead — it’s about getting more out of the leads you buy.
Discounts don’t build MCA shops. Discipline, consistency, and data-driven strategy do.