Wipe around the hole with a rag dipped in rubbing alcohol to clean out any dirt and debris from the area. Allow it to dry.
Apply leather conditioner around the area and allow it to sit for at least 24 hours before proceeding.
Cut a leather patch in the shape of a circle to prevent peeling. Make the patch slightly larger than the hole to provide room for the repair compound. Insert the patch under the hole for the best visual appearance.
Apply repair compound all around the patch where it touches the leather. Allow it to dry for 10 to 15 minutes then apply another coat. Larger holes will require more coats to adhere properly.
Remove any excess compound by wiping the area with rubbing alcohol. Don't wipe it more than a few times or you'll interfere with the repair patch up and have to redo the process.
Create a shade of colorant, supplied with the repair kit, that comes as close to the color of your couch as possible. Apply the colorant in thin layers, as opposed to one thick layer, which may flake and chip away. Allow it to dry completely before using the couch.