Client Financed Acquisition

This a a dummy short discription.

For Leafcut, Client-Financed Acquisition (CFA) means using the cash from new video projects to fund the next wave of paid acquisition, without needing external capital.

“You’re using the client’s money as an interest-free loan to acquire the next client.”

The core objective can be summarized as:

30-Day Gross Profit from a New Client > 2 × (CAC + COGS)

Where:

  • CAC = all-in cost to acquire a new client (ads, sales, tools, etc.)

  • COGS = fulfillment cost in the first 30 days (editor time, PM time, tools, VO, stock, AI, etc.)

  • 30-Day Gross Profit = revenue from that client in the first 30 days minus COGS

In plain language:

“You want to make at least twice as much gross profit in the first 30 days from a new client as it costs to acquire and fulfill them. One client’s cash can finance two more.”

Why 30 Days?

  • Aligns with standard net-30 payment windows

  • Matches typical Leafcut project timelines (Starter/Growth deliver and get paid in 1–2 weeks)

  • Coincides with the period when ad costs hit your card

If the first 30 days of revenue covers 2× (CAC + COGS), the client effectively pays for themselves and the next one, enabling growth through internal cash flow.

Key Metrics for CFA at Leafcut

Metric

Definition

CFA Goal (Leafcut Context)

LTGP (Lifetime Gross Profit)

Total gross profit across the full client relationship: multiple projects, upsells, repeat campaigns

Maximize over the long term with recurring projects, monthly ad batches, SaaS demos, and launches

CAC (Cost to Acquire Client)

All-in acquisition costs (ads, sales/PM time, tools)

Keep minimal per project, spend more if LTGP justifies it

30-Day Cash (PPD)

Gross profit in the client’s first 30 days including upsells

Must exceed CAC (ideally 2× CAC) to enable self-financing growth

WHY: The Unfair Advantage for Leafcut

CFA gives Leafcut a structural advantage over low-end freelancers and bloated agencies.

Cash Flow Solved:
Most studios struggle because the first project profit is lower than CAC.
CFA ensures Leafcut breaks even or profits in the first 30 days, without relying on future projects or investors.

Exponential Growth:
One client’s first-month profit can fund two more clients.
Example: A $799+ Custom client covers its own CAC + COGS and two $149–$249 Starter clients.

Decoupled Growth from Capital:
Growth is limited by capacity, not cash. Only the first wave costs out-of-pocket; subsequent waves are financed by client revenue.

Superior LTV:CAC Ratio:

  • Freelancers: low CAC, low LTGP

  • Agencies: high LTGP, high overhead

  • Leafcut: fixed scopes, efficient production, multiple project orders
    This widens LTGP:CAC, making Leafcut profitable and resilient.

HOW: Pulling the Three Levers at Leafcut

You activate CFA by adjusting three levers simultaneously:

1. Maximize 30-Day Cash (The Speed Lever)

The goal is to generate high-margin cash upfront.

Tactics:

Front-End Fees / Setup-Like Structures

  • Custom projects: 70–100% paid upfront

  • Include strategy-lite work (story structure, production plan) in scope

Upsells / Cross-Sells (Next Natural Offers)

  • Starter → Growth upsell within 30 days

  • Examples:

    • Short-Form Ads Starter → Growth batch (4–6 ads)

    • SaaS Demo Starter → Multi-feature demo series or landing page hero video

    • VSL Starter → Full VSL sequence at Growth/Custom tier

“If CAC = $80–$120, and first-30-day revenue = $249–$499, the client’s cash covers acquisition, fulfillment, and a buffer.”

Prepaid Multi-Project Deals

  • Incentivize multi-video or multi-month deals

  • Slight operational efficiency advantage (not framed as a discount)

  • Volume pricing policy: reduce effective per-minute rate up to 50% for Custom multi-video projects

2. Increase Lifetime Gross Profit (The Value Lever)

Maximizing LTGP allows higher CAC while still hitting CFA targets.

Tactics:

Stack Offers Intelligently

  • Starter ($149–$199) → Growth → Custom

  • Upsell, downshift, or continuity based on client journey

Add Continuity Without Retainers

  • Fixed-scope recurring batches:

    • Monthly ad creatives (4–8 ads)

    • Monthly SaaS updates

    • Quarterly launch kits

  • Predictable scope and pricing, recurring revenue without strategy retainer

Target the Right Avatar

  • Clients with ongoing video needs: agencies, SaaS teams, creators

  • Pay Custom-tier prices

  • Reorder multiple times per year

  • Often refer other clients

3. Decrease CAC (The Efficiency Lever)

Lowering CAC ensures 30-day profit exceeds 2× (CAC + COGS).

Tactics:

Compounding Vehicles (Exceptional Output + Smooth Experience)

  • On-time delivery, clear boundaries, no chaos

  • Drives referrals and word-of-mouth

  • Lowers blended CAC

High-Value Offer Architecture

  • Category-specific packages

  • Fixed deliverables, price, revisions, timelines

  • Simplifies sales calls → higher conversion per lead

Tight Qualification (Early Funnel)

  • Filter leads via Messenger flows & intake forms

  • Qualify on video type, budget ($149+), timeline, role

  • Keeps CAC focused on high-probability, right-fit buyers

Start Scaling Violently Across Multiple Channels

Money-back-gurantee

Tailored to your business

Leafcut

Dashboard

Projects

Analytics

Billing

Support

Settings

Videos Delivered

120

200%

Last 30 days

Total Reach

5.5M

312%

Last 30 days

Attributed Conversions

2.2K

55%

Last 30 days

Last 8 months with Leafcut

Attributed Resutls

Date

View

Jan

Feb

Mar

Apr

May

Jun

July

Aug

Videos

Revenue

Reach

Insights

The implementation of the new content distribution system...

4X ROI in the last 3 months while relative costs lowered 20%

Optimizing for virality lowered conversions hence we rever…

Quick actions

Support

Download Report

Start Scaling Violently Across Multiple Channels

Money-back-gurantee

Tailored to your business

Leafcut

Dashboard

Projects

Analytics

Billing

Support

Settings

Videos Delivered

120

200%

Last 30 days

Total Reach

5.5M

312%

Last 30 days

Attributed Conversions

2.2K

55%

Last 30 days

Last 8 months with Leafcut

Attributed Resutls

Date

View

Jan

Feb

Mar

Apr

May

Jun

July

Aug

Videos

Revenue

Reach

Insights

The implementation of the new content distribution system...

4X ROI in the last 3 months while relative costs lowered 20%

Optimizing for virality lowered conversions hence we rever…

Quick actions

Support

Download Report

Start Scaling Violently Across Multiple Channels

Money-back-gurantee

Tailored to your business

Leafcut

Dashboard

Projects

Analytics

Billing

Support

Settings

Videos Delivered

120

200%

Last 30 days

Total Reach

5.5M

312%

Last 30 days

Attributed Conversions

2.2K

55%

Last 30 days

Last 8 months with Leafcut

Attributed Resutls

Date

View

Jan

Feb

Mar

Apr

May

Jun

July

Aug

Videos

Revenue

Reach

Insights

The implementation of the new content distribution system...

4X ROI in the last 3 months while relative costs lowered 20%

Optimizing for virality lowered conversions hence we rever…

Quick actions

Support

Download Report

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