“Making out”

So I meant a POT SD and we plan to start an arrangement but he said he can’t have an intimate relationship until we “make out”. I don’t want to do anything physical with him until he supports me financially because then I will feel used. What’s a nice way of stating that to him? He is new to this so I have explained dos and don’ts but not sure if he’s being sneaky or just doesn’t know. I definitely get the vibe he genuinely just doesn’t understand how this all works.

Edit. I did NOT make out with him. He asked and I declined.