Free framework
PPA
PPA, Profit Per Acquisition, is a free financial framework from The Profitable Business. It is the only number that tells you what an acquired client is actually worth once you've delivered the work and paid every dollar to get them.
The one number that compounds.
If PPA is positive and growing, the business compounds. If PPA is negative or flat, no amount of marketing fixes it.
THE FORMULA
LTV
Lifetime value of a client. Full revenue across the entire relationship, not just first purchase.
CTA
Cost to Acquire that client. Full-loaded, not just ad spend. Includes sales, ops, and tooling allocations.
CTF
Cost to Fulfill. Gross-margin cost over the life of the relationship. Includes coordination, success, and renewal touch.
WHY PPA MATTERS
Most service businesses optimize the wrong number.
CAC tells you what you paid. LTV tells you what you'll eventually earn. Both are wrong on their own. PPA is the only number that closes the loop, what an acquired client is actually worth after you've paid every dollar to get them and delivered every hour of work to keep them.
PPA is a free financial framework from The Profitable Business. Reviewed monthly, by channel. Channels with rising PPA get more budget. Channels with falling PPA get cut, even if top-line looks healthy.
FAQ
PPA, common questions.
How is PPA different from CAC or LTV?
CAC tells you what you paid to acquire. LTV tells you what you'll eventually earn. PPA tells you what you actually made after both the acquisition cost AND the cost of fulfilling that client across the relationship.
What's CTF?
CTF is Cost to Fulfill, the gross-margin cost over the full life of the client relationship. Most operators underestimate it because they only count direct labor, not coordination, success, and renewal touchpoints.
How often should I recalculate PPA?
Monthly, by channel. Channels degrade and improve. PPA tells you which channels actually compound, and which ones quietly stopped paying.
Can PPA be negative?
Yes. Channels can run negative PPA before anyone notices because the LTV math is back-loaded and the CTF was never measured.
Does PPA work for course / membership / community businesses?
Yes. LTV is the full subscription value, CTF is the cost of every coaching call, success touchpoint, and community moderator hour over the relationship.