The ability to produce Perforated cut vinyl graphics typically requires a specific tool or specific equipment. A normal cutter will simply follow a cut path and only cut through just the media, not the backing. This is called a Kiss Cut. If your cut path is "dashed" or dotted the cutter can drop the blade to follow the dashed line, creating the effect of a perforation- but this method is not ideal and would require you to either change the blade depth or cutter pressure to get through both the media and backing and could damage your cut strip. To get a true perforation (where the cutter cuts completely through both the media and the backing paper), you would need An FC Series Graphtec Vinyl Cutter. Here is a link to a video detailing this process and the end result you can expect. Pouncing or perforating paper material for creating an outline for hand painted signage can be accomplished with a Graphtec pouncing tool. Check out these YouTube videos on creating pounced graphics. The first video shows the pounce production process , while the second video shows an application of a pounced production.