Facebook lead ads allow businesses to collect leads directly from Facebook by having interested users fill out a lead form. These leads can then be imported into a CRM or marketing automation platform for follow up. But how much do these leads cost on Facebook?
How Facebook Lead Ads Are Charged
Facebook lead ads are charged based on the actions of users, not on impressions or clicks. Specifically, you are charged when a user submits a lead form, whether or not they provide any accurate information. This pricing model means you only pay when you get an actual lead.
The cost per lead form can vary greatly based on things like location, audience targeting, and competition. On average most advertisers pay between $5-$40 per lead form submission. However, it’s possible to pay as little as $1 or as much as $100+ per lead in some cases.
Factors That Impact Cost Per Lead
There are several key factors that impact how much Facebook charges per lead form submission:
- Niche – More competitive niches like insurance, loans, or business coaching tend to have higher costs per lead. Less competitive niches can have lower costs.
- Location – Leads from countries like the US, UK, or Australia tend to cost more than developing countries.
- Audience targeting – Targeting broader audiences is usually cheaper than hyper-targeted niche audiences.
- Lead form length – Longer, more complex lead forms tend to convert at lower rates, driving up cost per lead.
- Ad creative – High performing creative gets better conversion rates and lowers cost per lead.
- Landing page – Better landing pages improve lead form conversion rates.
- Offer – An attractive, high-value offer can improve conversions and decrease cost per lead.
How Cost Per Lead Compares to CPC and CPM
Facebook lead ad pricing differs greatly from CPC (cost per click) and CPM (cost per thousand impressions) pricing models. With CPC and CPM ads, you pay simply based on clicks or impressions. But with lead ads, you only pay when users complete an action (submitting a lead).
This lead-based pricing model is generally advantageous for advertisers. You don’t pay for clicks or impressions that don’t convert. And you can optimize your ads purely for driving leads rather than clicks or impressions. However, you also give up some control. Facebook’s algorithm determines how much each lead is worth based on competition and expected conversion value.
Tips for Lowering Cost Per Lead
Here are some tips for decreasing your cost per lead on Facebook:
- Test different audience segments and targeting methods
- Try geographic and age targeting variations
- Experiment with interests, behaviors, and detailed targeting
- Try lower competition interests or niches
- Test ad variations to increase conversion rates
- Improve landing page user experience and conversions
- Shorten and simplify lead form fields
- Highlight offer value in ad creative
- Only collect essential user information
With testing and optimization, it’s possible to significantly decrease cost per lead over time. Every niche and audience is different, so you need to experiment to find what works for your business.
When Do You Get Charged for Leads?
One common question around Facebook lead ads is when you actually get charged for the leads. Here are the specifics:
- You are charged when a user submits a lead form, regardless of accuracy.
- Leads are charged in real time as form submissions occur.
- Invalid or fake leads are still charged like valid leads.
- Leads are charged to your payment method on file once approved.
- Charges appear on billing statements as they happen each day.
So you are essentially charged immediately when a user submits a form, before leads can be reviewed or validated. Even if users provide fake information, you will still pay per lead generated.
Can You Get Refunds for Bad Leads?
Since you pay as soon as a user submits a lead form, many wonder if you can get refunds for fake, invalid, or low quality leads. Here is how it works:
- Facebook does not offer refunds or credits for individual bad leads.
- Their policy is you pay for all leads regardless of accuracy.
- However, if you identify fraudulent lead activity, you can report it.
- Proven fraud or spam could potentially result in credits from Facebook.
- But bad leads due to user errors usually won’t qualify for refunds.
- You can request a refund within 5 days if leads don’t follow policy.
So generally you should not expect refunds for most bad quality or invalid leads. The exception is if you can prove systematic fraud or spam. Make sure to vet and validate leads quickly after submitting to catch issues.
Lead Ads vs. Conversions API for Charges
Facebook offers two options for generating leads from ads – Lead Ads and Conversions API. The pricing models for these two methods are slightly different.
With standard Lead Ads, you are charged immediately when a user submits a lead form hosted by Facebook. Pricing is determined by Facebook’s auction system.
With Conversions API, leads submit forms on your website, not Facebook. You are then charged when those leads match to a Facebook click or impression. Pricing is based on your conversion goal bid strategy.
In general, Lead Ads offer a simpler, faster option for lead gen. But Conversions API offers more control over lead forms and pricing. Evaluate both options for your needs.
| Method | Lead Form Location | Pricing Model | Pros | Cons |
|---|---|---|---|---|
| Lead Ads | Facebook auction |
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| Conversions API | Your website | Your bid strategy |
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Should You Use Lead Ads or Conversions API?
So should you use Facebook’s Lead Ads or Conversions API for generating leads from ads? Here are some best practices:
- For simple lead generation, use Lead Ads to start.
- If you want extensive customization, use Conversions API.
- Test both methods and compare performance.
- Consider your technical expertise when deciding.
- Evaluate lead pricing control vs. ease of setup.
- Assess whether your goal is on-Facebook or website leads.
- Combine both options to complement strengths.
Evaluate your specific business objectives, resources, and capabilities. Ideally test both approaches to gain experience. Lead Ads offer quick and easy lead gen from Facebook ads. Conversions API requires more work but provides greater control and customization.
Other Facebook Advertising Options
In addition to Lead Ads and Conversions API, there are a few other options for generating leads from Facebook advertising:
- Website Clicks – Drive traffic to landing pages to collect leads.
- Messenger Subscribers – Attract Messenger opt-ins for ongoing communication.
- Appointment Bookings – Let users book calls and meetings.
- Instant Forms – Request info with customized lead forms.
- Automated Messaging – Use bots to engage users via Messenger.
You aren’t limited just to Lead Ads. Combine different ad formats and placements to maximize conversions and lower cost per lead overall. Test innovative ways to generate leads beyond basic form submissions.
Should You Use Facebook Lead Ads for Your Business?
Facebook Lead Ads offer an easy way to generate leads from the world’s largest advertising platform. But are they right for your particular business? Here are some key questions to consider:
- Do you have a defined audience that actively uses Facebook?
- Can your product/service be explained in a short ad format?
- Do you have a straightforward, high-value offer to promote?
- Can you create simple, engaging lead gen assets like forms?
- Are leads a key goal and metric for your marketing right now?
- Do you have workflows to collect and follow-up on leads?
If you answered yes to most of these questions, Facebook Lead Ads are likely a good fit for your current needs. They provide a fast, affordable way to reach audiences you already have a presence with on Facebook. If your business is more complex or targeted to non-Facebook users, Lead Ads may be less beneficial.
The Bottom Line
Facebook Lead Ads utilize a unique pricing model where you only pay when users submit lead forms – not impressions or clicks. Cost per lead varies based on competition, targeting, creative, and other factors. While you can’t get refunds for bad leads, you can optimize ads to decrease cost per lead over time. Evaluate Lead Ads versus Conversions API based on your goals, resources, and need for customization.