Pay-Per-Lead (PPL)
Pay-per-lead (PPL) is the most common MCA lead pricing model where the buyer pays a fixed price per delivered lead regardless of whether it converts — putting the conversion risk entirely on the buyer and predictability on the vendor side.
Why This Matters
PPL pricing transfers all conversion risk to the lead buyer. The vendor delivers a record matching agreed criteria (industry, revenue range, geography, freshness) and gets paid whether or not the merchant funds. PPL is dominant because it's simple to operate, transparent in unit economics, and lets vendors aggressively scale lead generation without holding capital risk. The buyer's job is to negotiate quality terms, return windows for non-contactable leads (typically 7-14 days, 5-10% return rate cap), and replacement policies for fraud or duplicate leads.
Frequently Asked Questions
Frequently Asked Questions
What return policies are standard on PPL contracts?
Industry standard: 7-14 day return window for invalid records (disconnected phones, wrong industries, out-of-criteria revenue), capped at 5-10% of total volume. Returns get replaced or credited. Beyond the cap, all leads are final-sale even if non-contactable.
How does PPL compare to pay-per-call or pay-per-funded?
PPL: lowest unit cost, highest unit risk to buyer. Pay-per-call: vendor must deliver a live call connection, costs 3-5x PPL but eliminates dial waste. Pay-per-funded: vendor takes 8-15% of funded deal, zero upfront risk to buyer, used heavily by aggregators.