Swulinski: Paid ads are the fastest way to validate product-led growth
“Paid is the easiest way to validate that you have PLG, that you have a product that can scale in any way, shape or form, right? Like there, there's a ton of narrative that like focus on brand, go organic content, build all that base. That just takes too much t…”
Swulinski: Paid Acquisition Usually Fails Due to Bad Conversion Tracking Setup
“If you have poor conversion tracking, Meta doesn't know who those people are, and it just randomly targets people, and you, you'll have a super high CAC, you'll say, ah, pay doesn't work for me. I'd say most of the time, people haven't done the actual setup co…”
Swulinski: Spending over $1M monthly requires MMM and incrementality models
“You definitely want a strong MMM model and incrementality when you're, like, the moment you start spending north of a million dollars a month”
Verna: Paid marketing in year one is a death trap for founders
“For any founder in the first year, investing in paid as the means of growth is a death trap.”
Verna: Early startups should limit paid growth to under 10%
“Less than 10% should be paid in the more scaled mature company can be 30, 40%, but anywhere over 50%, I would be very uncomfortable on the reliance on paid”
Lee: Products relying on over 50% paid acquisition have broken growth engines
“You don't want your product to be at a point where. More than 50% of your acquisitions are coming through paid acquisition. I think if that is happening, your core growth engine is broken”
Slonimski: New Consumer Apps Cannot Survive on Organic Growth Alone
“Within the current products in the red ocean market, I don't think you can live just with organic, and organic is very hard to get. So you need to start with paid”
Isenberg advises mobile app founders to spend zero on paid ads early on
“In fact, I would spend nothing really on paid in the beginning. I would be working just on organic.”
Malik: Perplexity barely uses paid acquisition channels
“We, I mean, we don't really. We barely touch paid.”
Malik: Paid acquisition is a drug that underperforms on user retention
“Paid acquisition is a total drug. It makes everyone feel good because top of funnel numbers move up, and once you see those, you know, weekly activation rates, well, no one wants to see that go down. But it's going to underperform on retention, and maybe most …”
Malik: Turning off Lyft's paid channels reduced signups by only 5-10%
“And so the growth marketing team turns off every single paid channel and installs and signups barely move. They go down by like maybe five, 10%. I don't remember what it was and what did go down. It was all Low quality. So every marketing dollar that was being…”
Martens: Tally grew to $1.3M ARR with zero paid acquisition spend
“You know, we have grown organically until now. We haven't invested anything in paid acquisition, so not making it free was not really an option for us, you know.”
Walling: A $29/Month SaaS LTV Cannot Support Paid Ad Channels
“Even, even if everyone you acquired Upgraded a 29 dollar a month plan. There is no, there are no ads anywhere on earth that you can make that, that LTV work.”
Winters: Edges in paid acquisition channels generally get competed away by rivals
“In today's environment where like paid is pretty hard to get an edge on any sort of edge you have will generally get competed away by competitors coming into the market. You're looking to see that someone's not going to rely on paid or sales for everything unl…”
Winters: Paid acquisition inevitably degrades and becomes unprofitable over time
“And the challenge with paid is It always looks better yesterday than it does today, unless you have a network effect business where the product quality is getting better, faster than the quality of people you're bringing are getting worse, right? Cause you alw…”
Gross: Startups using paid acquisition under $100M ARR are not PLG
“If you are doing PLG and you're doing paid acquisition, sub a hundred million in revenue, I'm not sure you're really PLG.”
Ads in Competing Newsletters Yielded Morning Brew's Best Paid Subscribers
“It's always been the highest quality channel for paid acquisition has been spending on ads in other email newsletters, because at least it is a behavior that someone already has.”
Allebest: Chess.com instituted a firm rule against paid user acquisition
“We'd totally been burned on, on paid acquisition, and we pretty much made You know, a very firm rule that we weren't going to do paid acquisition. And so instead we said, we're going to take any money that we have and we're going to put it into content because…”
Blomfield: Paid referral schemes are paid acquisition, not organic virality
“I would treat this as paid acquisition, actually. You're spending money to acquire customers, and if you stop spending, those customers won't appear.”
Ely Lerner: Push notifications and paid marketing only work in specific niches
“Paid is oversaturated in a lot of ways. I would say, though, that they're not, these things are not dead. They're dead as broad brush tools. Paid has channel, like, has specific niches where it works well. Push notifications have specific niches where they wor…”
Paid acquisition is highly likely to succeed if other marketing channels work
“If other things work, it is highly likely that paid acquisition will work.”
Grammarly scaled to massive success almost exclusively through paid acquisition
“And I think there's some really great examples Of companies that have scaled, you know, in relatively recent times, almost exclusively through paid, like Grammarly is a really good example of this.”
Converting 5% of free users enables paid growth loops
“If I'm seeing things like that, and I'm seeing that you're converting, you know, seven, like five plus percent of your free users to a paid subscriber, then there is a big opportunity to play paid, right? And lean into kind of paid Paid growth loops and paid a…”
SEO results take at least six months to materialize
“SEO has a different a different return horizon than say paid acquisition, right? It's longer out. It's maybe six months is the earliest you can see results. And even then it's going to be a small trickle that compounds over time.”
Timen: Disciplined companies like Grammarly will win from ad market contraction
“But even right now, during contraction, there are going to be some winners. The companies that had strong cash positions, had strong unit economics, strong payback periods already, right? Grammarly, Canva, to name two that I know personally, a couple of others…”
Paid acquisition is best outsourced to agencies due to rapid channel changes
“So if paid acquisitions kind of working for you, that's often a really good use case for going with an agency or somebody who does it all the time because it changes so fast and so much, you know, right.”
Adora Cheung: Acquiring early users through paid channels is cheating growth
“I think in the early days using paid users is actually cheating growth and you should avoid it as much as possible.”
Hale: Sole reliance on paid acquisition fails as scale attracts competitors
“If paid acquisition is the only way that you are able to grow your company, then I'm gonna discount that channel of growth greatly. That is because if you actually get really popular, you can actually start being someone significant, Let's say becoming a hundr…”
Kamleitner: Software companies cannot rely exclusively on paid ads for sustainable growth
“Paid paid acquisition through adverts also, also at some point hits the ceiling. And we are seeing, like you said, the space is competitive. So, so it will not be it will not work to grow only from cost per click forever.”
Russ Hedleston: Max Out Paid Acquisition if Unit Economics Work
“And if you can get the unit economics anywhere near reasonable for paid acquisition, you should Probably put everything you can into that channel, knowing it's just a component of your overall strategy.”
Jeff Jordan: Top internet companies didn't rely on paid acquisition
“Most of the best businesses in the internet age of technology haven't spent a ton on paid acquisition.”
Paid acquisition eventually replaced content as Front's main user source
“So at scale, content is not at all how we get users today. But in the early days, or at least it's still some of the way we get users, but not the main source. Which is paid acquisition.”
Maveron's best startups rely on repeat customers, not paid acquisition
“If there's a unique characteristic across the most successful portfolio companies we have, it's high repeat and a lack of dependence upon paid acquisition for a significant piece of your revenue.”
High paid acquisition costs force mobile game studios toward organic marketing
“Because of the pressures of just straight acquiring, like, paid acquisition is the pressures are so high on there, that's when you see things move more towards organic, because you're always trying to reduce the cost of customer acquisition.”
Agencies failed, but an in-house expert cracked paid acquisition ROI
“Until like six months ago, I was under the impression that it is not possible to have a positive ROI on on paid acquisition. Cause I've never seen it in, this is my first, second company and I've never seen it work. And we we've tried external agencies. We've …”
Ledgard: Paid channels drive only about 10% of KickOffLabs' customer acquisition
“Paid acquisition, which is probably more like
You know, 10% of our acquisition”