Cost per lead is a way to make money online as an advertiser will pay when people contact them through links placed on other websites. There is a set price agreed for every occasion that the link is clicked, and it is not only just for clicking through. Sometimes there has to be some sort of form filled in before there will be a payment, but this will be known beforehand.
Cost per lead, or as it is more commonly known, CPL, allows merchants to collect contact information from individuals and while this is usually just an email address, it is a way of contacting someone who if not actually in the process of making a purchase is showing an interest in the products or services involved.
One of the reasons that companies look to pay for information is to allow themselves to build up a data base. Large companies who want to make contact cannot always get the information until an actual sale has been made as people who browse don’t always pass on any information. This way literature can be sent to people who have shown an interest in some way, rather than just sending out details to random people who may have no interest whatsoever.
In other cases, it will be people who have filled in the forms whose details are wanted as they have chosen to make the first move themselves. People like to be given the choice as to whether or not to fill in forms and give information, so anyone who clicks but does not go through the process of filling in the form will not lead to a payment to the website owner.
An example of this will be a publisher putting an advertising banner for another person on their blog and encouraging visitors to click through to the site. If they do this and then follow through and sign up for whatever special offer is available then the contact details can be collected and the person whose site they came from will be paid as that will be classed as a successful click. The amount will have been pre-arranged, so income can vary as not all banners are going to promote successful products. This system allows advertisers to stay in control of who will be allowed to promote them, as they only want sites who will attract the same sort of person that they do.
