Lead generation is worth it when the cost of getting a customer is clearly lower than what that customer pays you. That sounds obvious, but most businesses never do the maths. Here's how to work out whether investing in leads, or in a lead generation company, makes sense for you.
The simple formula
Cost per customer = cost of leads ÷ (leads × conversion rate). If 100 leads cost $300 and you close 3%, each customer costs $100. If a customer is worth $1,500, that's an easy yes. If a customer is worth $80, it's a no.
| Leads | Cost | Close rate | Customers | Cost per customer |
|---|---|---|---|---|
| 100 | $300 | 1% | 1 | $300 |
| 100 | $300 | 3% | 3 | $100 |
| 500 | $1,200 | 2% | 10 | $120 |
When lead generation is worth it
- Your customer lifetime value is high (agencies, B2B services, trades, SaaS).
- You have a proven offer and can close when you get conversations.
- Your time is worth more selling than researching.
- You can follow up consistently. Leads without follow-up are wasted money.
When it isn't (yet)
- You don't know your close rate or offer yet: run 50 leads manually first.
- Your product sells for very little and has no repeat purchases.
- You have no time or process to follow up.
Are lead generation companies worth it?
They can be, if you pick the right model. Pay attention to how they source leads, whether leads are exclusive, how they're checked, and what happens with bad data. Read how lead generation companies work and pay-for-performance lead generation before signing anything.
Red flags
- Guaranteed sales or revenue numbers.
- Long contracts with no trial.
- No clear answer on where the data comes from.
- The same leads sold to many buyers without telling you.
Test lead generation without a contract: pay for one month, request a small batch of done-for-you leads and measure your own close rate.
Start free — no card neededor claim up to 3,000 FREE credits with a paid planNo long contracts: pick a package and change it any time.
Basic
$9.99/month
11,500 credits a month
+ 1,000 FREE credits
- About 261 done-for-you leads
- or 88 AI website previews
- All features included
Pro
$39/month
50,000 credits a month
+ 1,500 FREE credits
- About 1,136 done-for-you leads
- or 384 AI website previews
- All features included
Premium
$79/month
105,000 credits a month
+ 3,000 FREE credits
- About 2,386 done-for-you leads
- or 807 AI website previews
- All features included
Frequently asked questions
Is paying for leads worth it?
It's worth it when your cost per customer (lead cost divided by customers won) is well below what a customer is worth to you. Test a small batch and measure.
Are lead generation companies a scam?
Most aren't, but some oversell. Avoid companies that guarantee revenue, hide their data sources, sell the same leads to many buyers without saying so, or demand long contracts without a trial.