Is Your Marketing
Actually Profitable?
Agencies rely on "Vanity Metrics" to hide inefficiency. Use this diagnostic model to audit your Unit Economics and determine if your growth is actually scalable.
How to Read Your Results
A healthy business typically aims for a 3:1 LTV to CAC ratio. This means for every $1 you spend on marketing, you should get $3 back in lifetime gross profit.
Danger Zone (Ratio < 1.5)
You are losing money or barely breaking even. Pause your ads immediately. You likely have a "Volume Trap" issue—paying for leads that don't convert.
Scale Zone (Ratio > 3.0)
You are printing money. This is when you should increase budget aggressively. Your infrastructure is solid.