Is This A Reasonable Lead Valuation Method?

Jared Jammer

Rookie Marketer
Dec 17, 2014
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I'm watching Brian Burt's PPL Empire. In it, he reveals his valuation method, which is:

AdWords Suggested CPC * 5-7.5

For example, if Luxury Car Insurance In Phoenix has a suggested CPC of $50, and he has a page ranked for that term, he'll charge between $250 and $375 per lead. Also worth noting that he charges the same for both calls and form fill-outs.

His reasoning is that to gain that lead via AdWords with a conversion rate of 10% would cost $500, so he's giving them a discount between 25-50%.

So, is this a reasonable method?

Thanks, fellas.