How to Know If Your Funnel Is Actually Profitable (And What to Do If It’s Not)

I was recently at Mastermind.com, teaching my 4 A’s of Business™ framework.

The room was packed with coaches, consultants, and business owners — all eager to learn how to grow their businesses faster and easier.

During my session, I explained the purpose of a funnel — and how to know if it’s actually working.

Have you ever wondered that?

Have you ever wondered, how do I know if my funnel will be profitable? And if you discover it's not, what the hell do you do about it?

Yeah, me too.

That's why, about two-thirds of the way through the training I break it down.

Most people struggle with this part. They're frustarted because they've followed all the “guru” advice.

✅ They have a lead magnet.

✅ They have an offer.

✅ Some may even be running paid ads.

But they still didn’t know if their funnel is profitable.

So I ask people one simpel question:

“What’s your CPA? And what’s your ACV?”

When I ask this, most peoples faces go blank.

And I know right then and there what the problem is.

The 2 Numbers That Reveal Whether Your Funnel Is Winning or Losing

If you want to know whether your funnel is profitable (or if you’re just burning money), you need to know TWO numbers:

✅ CPA (Cost Per Acquisition)

✅ ACV (Average Cart Value)

Here’s what they mean — and how you calculate them.

Step 1: Calculate Your CPA (Cost Per Acquisition)

CPA is the amount of money it costs you to acquire a new customer.

📌 Formula: Total Ad Spend ÷ Number of Purchases = CPA

For example:

• You spend $1,000 on Facebook ads.

• 10 people buy your offer.

Your CPA is $100.

That means you’re paying $100 in ad spend to acquire each new customer.

Step 2: Calculate Your ACV (Average Cart Value)

ACV is the average amount of money you make per customer.

📌 Formula: Total Sales ÷ Number of Purchases = ACV

For example:

• You generate $1,500 in total sales.

• 10 people purchased.

Your ACV is $150.

That means you’re receiving $150 per customer that goes through your checkout process.

Step 3: Compare CPA to ACV

✅ If ACV is higher than CPA = PROFITABLE FUNNEL

✅ If ACV is equal to CPA = BREAKEVEN FUNNEL

✅ If ACV is lower than CPA = UNPROFITABLE FUNNEL

The 4 Key Principles for Fixing an Unprofitable Funnel

Once you understand your numbers, you can identify your issue — if your CPA is higher than your fix it.

If that's the case, here are four principles to fix it.

Principle #1: Simple Scales, Complexity Fails

Most people over complicate the process. They think their ads need to be something different from their funnel, but here's a secret...

The more congruent the ad is with the funnel, they higher the likelihood they'll convert.

The question you have to ask yourself is simple. Does my ad reflect my funnel or visa versa?

If not, you're complicating the process. Simplify your approach until you can answer yes, to the above question.

Principle #2: Disciplined Execution

I had a client who was constantly tweaking her ads, redoing her offer, and “testing” new ideas.

Every time she panicked, she started over.

❌ That’s why she never gained momentum.

So I had her commit to one system for 90 days — no changes unless the data proved it was necessary.

The result? Consistency drove results.

Yes, it's true that you need new creative, but a completely new approach, each and everytime, that's confusing.

Principle #3: Slow Is Smooth, Smooth Is Fast

Most people rush.

They want instant results.

They want to "set it and forget it".

🚨 That’s why Sarah's funnel kept failing. 🚨

Instead, I taught her to optimize ONE step at a time.

✅ First, we fixed her ad targeting.

✅ Then, we improved her landing page copy.

✅ Then, we tweaked her checkout process.

Instead of constantly starting over… she refined what was already working.

Principle #4: Whoever Can Iterate the Fastest Wins

Here’s the truth:

Funnels are never “done.”

Even profitable funnels can become MORE profitable.

That’s why I had Sarah review her numbers every week.

✅ She tracked her CPA and ACV.

✅ She tested new headlines, CTAs, and offers.

✅ She refined her follow-up process to increase conversions.

In 30 days, her ACV increased by 25%.

The 4 Key Strategies That Turned Sarah’s Funnel Around

Once we applied the principles, I gave Sarah four strategies to make her funnel bulletproof:

🔥 Strategy #1: Start with the End in Mind

Sarah’s biggest breakthrough?

She stopped trying to “sell” her audience… and started providing value in advance.

By starting with the end in mind she was able to identify her ideal buyer. The person who she would want to ascend through each of her various steps and work with one-on-one.

✅ Her content created desire for her offer.

✅ Her lead magnet attracted the right people.

✅ Her sales page pre-framed why her offer was the best solution.

🔥 Strategy #2: Move the Free Line

Sarah stopped hiding her best stuff.

Instead, she gave her best ideas away for free.

The result?

🔥 Her audience trusted her MORE.

🔥 She started attracting higher-quality leads.

🔥 Strategy #3: Direct, Adapt, and Iterate

Instead of guessing, Sarah treated her funnel like a science experiment.

✅ She directed her content toward her ideal audience.

✅ She adapted based on feedback and results.

✅ She iterated until her funnel clicked.

🔥 Strategy #4: Persist Until You Succeed

Most coaches quit too soon.

Sarah almost gave up when her ads weren’t converting right away.

But she stuck to the system, followed the data, and kept refining.

After 60 days, she had a funnel that turned $1 into $1.20… then $1 into $2.

What Happened Next?

🔥 Sarah’s ACV is now 2x higher than her CPA.

🔥 Her funnel brings in leads AND profit — on autopilot.

🔥 And she’s spending less time guessing and more time scaling.

Now, her funnel isn’t just “working”… it’s predictable and profitable.

Want to Build a Funnel That’s Predictably Profitable?

🔥 Join the Focus Factor Masterclass: How to Avoid the 7 Fatal Mistakes Coaches Make on Their Way to Success.

📌 Click here to join the waitlist now.

Next week, we’re diving into The Four A’s of Business: How to Attract Your Ideal Clients Like Clockwork.

Trust me… you won’t want to miss it.

👉 Reply with “PROFIT” if you’re ready to start building a profitable funnel now. 🚀