Debt Defense Lead Cost and Break-Even Math

Break-even for debt defense leads is simple arithmetic: the cost of every lead you buy, divided by the number of clients it produces, compared with what a client is worth to you. At $0.50 per lead the lead cost is small, so what decides it is your conversion rate and your fee. The numbers below are examples, not benchmarks.

What is the formula?

Cost per signed client = (cost per lead + cost per mailed piece) / share of leads that sign.

A lead costs $0.50, and we print and mail a postcard for $0.75 more ($1.25 a lead all in) or a letter for $1.25 more ($1.75 a lead).

What does an example look like?

Suppose, purely as an assumption, that 1 in 100 leads becomes a client. Then a signed client costs $125 in leads and mail at $1.25 a lead. If a typical debt defense matter earns you more than that, the channel pays. If 1 in 200 sign, the same client costs $250. Your own tracking, not these figures, should set the number.

What should you track?

Leads received, pieces mailed, calls, and signed clients, per month. How to calculate cost per acquired client walks through the calculation, and break-even math for your first new case shows how to find the fee side.

Why not just assume a conversion rate?

Because we do not have one for debt defense. Revenue Spark did not publish a conversion figure for this practice area, and rates from other sources were measured in other markets. Start with a small test: pick one county, one letter, and a month of leads.

Where does this leave the decision?

At this price the main risk is not the lead fee; it is not following up. See how to follow up with a debt defense lead, the consumer debt defense page, and pricing.