The three levers of CFA.

So you're telling me, we can get paid to make money.

Sign me up. Young me to older me.

Lost chapters, author notes.

Same thing here, too many math questions from the sample readers,

and everyone got scared with math, so I ended up cutting it.

But I love this chapter.

To grow a business, you can either get more customers or make them worth more. To grow our business, we do both. But there's one more variable I care about, speed. In other words, I don't just care that a business grows. I care how fast it grows. And if we're smart, we can have it all. We get more customers, we make them worth more and do it fast. And those three elements create the three levers of CFA. Number one, get more customers, we make them worth more, and do it fast. And those three elements create the three levers of CFA.

Number one, get more customers,

aka lower the cost of acquiring customers, lower CACC,

number two, make them worth more,

aka increased lifetime gross profit, increase LTGP.

Number three, do it fast, aka decrease payback period.

Decrease PPD. CFA level one. Get more customers,

a.k.a. lower the cost of acquiring them. To get more customers, you need to spend more in

advertising, or lower how much it costs to acquire a customer, cack. And the lower it is,

the better. You find it by adding the money is spent on advertising, sales, and their supporting activities

divided by the number of customers you get.

Example.

You pay a content producer $10,000 a month.

Each month you acquire 10 new customers from the content they make.

KAC equals $10,000, divided by the 10 customers required equals $1,000 per customer.

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