The best consumer companies often have a growth split of over 80% organic to 20% paid. Relying too heavily on paid growth can lead to increased costs and reduced profitability as competition for ad space intensifies.

Organic growth, which is growth that doesn't require payment, is often neglected by founders. For example, at Monzo, we reached a million customers before spending on direct marketing or advertising, primarily through virality and network effects.

Virality occurs when one user introduces your product to others, while network effects mean the product becomes more valuable as more users join. Successful consumer companies leverage both to grow their user base organically.

Advertising businesses represent only 3% of the top 100 YC companies, as they require organic virality to succeed, making them less reliable for scaling.

The best companies grow through word-of-mouth rather than paid acquisition, and in the early days of a startup, if you lack funds, focus on growing your business without spending money by doing things that don't scale. This organic growth is a sign of a strong product that resonates with users.

Viral growth occurs when users have such a great experience that they recommend your service to others, leading to organic growth without additional costs.

Organic growth companies are far more common than those that grow rapidly, and the latter are often outnumbered in the startup ecosystem.

The ideal product for organic growth is one that provides value to the first user, ensuring that even a single customer finds it beneficial.

Successful startups often start with non-scalable methods to acquire their first customers before moving to scalable growth channels.