Keep it in perspective

Red Capital was spending $22,000 per month on lead generation, purchasing leads at $115.50 per lead. They specialized in servicing a range of clients, including small businesses, startups, and entrepreneurs.

With a lead-to-application conversion rate of 30%, they were generating 190 leads per month, resulting in approximately 57 applications per month.

From those applications, 24% converted into settled deals, meaning Red Capital was securing approximately 13 settled deals per month.

The average financing deal size in the initial scenario was $58,000, and with a commission rate of approximately 5%, Red Capital earned $2,900 per settled deal.

- Initial Monthly Revenue: 

 13 settled deals × $2,900 = approx. $40,000

Improved Situation:

After working with Biz Launch, Red Capital reduced their cost per lead to $58 while adjusting their marketing budget to $18,000 per month. This change allowed them to generate 310 leads per month under the new budget.

With an improved lead-to-application conversion rate of 38%, Red Capital was now generating 117 applications per month.

With 27% of applications converting into settled deals, they secured approximately 31. settled deals per month—on top of their other lead sources.

The average deal size in the improved scenario was $53,000, and with the same 5% commission rate, they continued to earn $2,650 per settled deal.

- Improved Monthly Revenue:

 31 settled deals × $2,650 = approx. $84,000 (on top of their other lead sources).

Profitability Analysis:

- Initial Scenario:

 - Ad Spend: $22,000 

 - Revenue: $39,672 

 - Profit: $39,672 - $22,000 = approx. $17,000

- Improved Scenario:

 - Ad Spend: $18,000 

 - Revenue: $84,376 

 - Profit: $84,376 - $18,000 = approx. $66,000

By partnering with Biz Launch, Red Capital increased their profitability by over 275%, improving both lead cost efficiency and overall revenue, while continuing to grow alongside their other lead sources.

But want to learn how?