What is cost per lead?

Cost per lead refers to the amount spent on acquiring a lead. This cost is factored heavily into CAC. The most common use case for cost per lead can be found in paid advertising where there is a direct correlation between the amount of money you are spending in something like Google Ads, and the number of leads you are generating from that spend. This cost is the first cost which the company has to pay inorder to acquire a lead and then convert the lead into a potential customer.