Pay-per-Lead (PPL)

Pay-per-Lead (PPL) is a billing model in online marketing where advertisers pay for each generated lead. A lead is a potential customer who has expressed interest in a product or service through a specific action, such as filling out a form, signing up for a newsletter, or requesting more information.

A central aspect of PPL is performance-based billing. Unlike models such as Pay-per-Click (PPC), where payment is made for each click on an ad, the PPL model requires payment only when a qualified lead is generated. This makes PPL particularly attractive to companies that focus on generating high-quality contacts with a higher likelihood of converting into customers.

Another important aspect is the quality of the leads. Since PPL aims to acquire valuable customer contacts, advertisers place great emphasis on ensuring that the generated leads are relevant and interested. This often requires targeted communication and careful design of landing pages and forms to ensure that only seriously interested users become leads.

Example: A software company could launch a PPL campaign where it pays for each completed request for a free product demo. Only when a user fully completes the form and provides their contact details does the payment become due.

PPL campaigns are particularly popular in the B2B sector, where the value of a single lead can be high, and the sales cycle is often longer. By focusing on lead generation, companies can use their marketing budgets more efficiently and increase conversion rates.

In summary, Pay-per-Lead (PPL) is an effective billing model based on generating qualified leads. It allows companies to pay for concrete prospects who have already shown some interest in their products or services, thereby increasing the efficiency of marketing spending and improving the likelihood of conversions.