Bookshelf · $100M Lost Chapters
$100M Lost Chapters by Alex Hormozi, framework 4 of 14
Customer Financed Acquisition (CFA)
Let customers pay for the next customers so cash stops limiting growth.
Alex Hormozi's framework, from $100M Lost Chapters, pp. 46 to 71.
- Lower CAC
Add every cost of getting a customer, divide by customers acquired, then improve the best channel.
- Raise LTGP
Increase gross profit per customer over their whole life.
- Shorten payback
Recover CAC within 30 days, ideally at twice CAC.
From chapter: Section B: The Expensive Customer Problem, pp. 46–71
More from this book
All 14 frameworks-
Framework 5 · Offers and pricing Calculating LTGP Back-of-napkin lifetime gross profit.
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Framework 6 · Money and finance Levels of CFA Where a business stands on funding its own growth.
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Framework 7 · Offers and pricing Ultimate Offer Stacking Process Weave one of each offer type into a customer journey.
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Framework 8 · Offers and pricing Four steps to picking the right offer Check any new offer against four conditions.
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Framework 9 · Offers and pricing Bonus design for continuity Keep customers paying by pairing a when with a what.
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Framework 10 · Exits Creating a one-time fee Add a made-up fee that raises commitment and offsets acquisition cost.