PPA
The one number that compounds.
PPA — Profit Per Acquisition — is the financial framework inside Revenue OS. 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. If PPA is positive and growing, the business compounds. If PPA is negative or flat, no amount of marketing fixes it.
Lifetime value of a client. Full revenue across the entire relationship, not just first purchase.
Cost to Acquire that client. Full-loaded — not just ad spend. Includes sales, ops, and tooling allocations.
Cost to Fulfill. Gross-margin cost over the life of the relationship. Includes coordination, success, and renewal touch.
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.
In Revenue OS, PPA is the financial backbone of the Operate phase. Reviewed monthly, by channel. Channels with rising PPA get more budget. Channels with falling PPA get cut, even if top-line looks healthy.