Cost Per Funded (CPF)
Cost per funded (CPF) measures the total customer acquisition cost divided by funded deals — the canonical ISO and funder economics metric capturing all-in marketing and sales investment per successful funding event.
Why This Matters
CPF calculation: (total marketing spend + sales overhead + lead acquisition costs) / funded deal count over period. Industry benchmarks: $300-$800 CPF for ISO operations, lower for direct funders with established brand presence. CPF includes all customer acquisition investment: lead purchases, PPC spend, content marketing, sales team compensation, and operational overhead allocated to acquisition. Strong operations track CPF by lead source enabling channel optimization (concentrating budget on lowest CPF channels).
Frequently Asked Questions
Frequently Asked Questions
What CPF is healthy for ISO operations?
$400-$700 typically healthy at average $30K-$50K funded amount producing 10-15% commission. Above $1,000 CPF challenges unit economics; below $300 may signal under-investment in lead generation.
How do funders reduce CPF over time?
Brand investment (organic lead acquisition reduces paid lead dependence), conversion optimization (improving close rate from same lead volume), and operational scale (fixed cost amortization). Top funders achieve 30-50% lower CPF than competitors through these levers.