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How it is calculated
| Spend | Leads × cost per lead. |
|---|---|
| The funnel | Each stage is a percentage of the one above it: contacted of leads, submitted of contacted, approved of submitted, funded of approved. |
| Cost per funded deal | Spend ÷ deals funded. |
| Break-even cost per lead | Gross commission ÷ leads bought. Above this price the order loses money at these rates; below it, it makes money. |
Where it stops being reliable
- It costs nothing here to type an 80% contact rate. Use the rates your CRM actually reports, not the ones you would like.
- Rep time is not in this model. A funnel that needs twelve dials a lead and one that needs three can produce the same cost per funded deal and completely different economics.
- Commission is modelled as points on the advance. Clawbacks on early default are real and are not deducted here.
Questions
What is a good cost per funded deal on MCA leads?
It only means anything against your commission. At a $62,000 average advance and 10 points, a funded deal is worth about $6,200 — so $1,500 to acquire one is a four-times return and $4,000 is still profitable. The number to watch is the trend across orders, not the absolute.
Why is cost per lead a bad way to compare vendors?
Because it ignores everything that happens after delivery. A $20 lead reaching a fifth of the people a $60 lead reaches is more expensive per conversation, before you count the rep hours spent on the difference. Run both through this and compare the funded-deal number.
What contact rate should I expect from exclusive verified leads?
Higher than from shared or aged data, but the variable that moves it most is not the lead — it is how fast you call. Shops calling within five minutes report contact rates several times those of shops calling the next morning, on identical leads.
How many MCA leads does it take to fund one deal?
On our own benchmark, an order of 50 produces two to four funded deals — so roughly 12 to 25 leads per deal. The worst recorded outcome was zero, and every time it came down to how the leads were worked rather than the leads.