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
