Referrals can be a powerful growth strategy, but they should be measured for incrementality to ensure they are effective and not just perceived as free growth.

Relying solely on paid acquisition for growth is risky. If your growth depends only on ads, it may not be sustainable in the long run, especially as competition increases.

Incentives can be a scalable growth tactic if implemented correctly, such as through referral programs that leverage existing users to attract new ones.

The mechanics of a referral program should be clear and enticing. For example, offering rewards for both the referrer and the new user can incentivize sharing.

Be cautious with paid growth, as it can be risky; if you pay for users who don't generate enough revenue, you could run out of money.

Referrals amplify word of mouth; offering financial incentives for users to share your product can enhance this effect.

It's a common mistake to assume that paid acquisition costs will remain constant; in reality, it often becomes more expensive to find and convert users over time.

For paid growth, ensure you have revenue before investing in ads, and understand your customer acquisition cost (CAC) versus the lifetime value (LTV) of your users to ensure profitability.

When measuring customer acquisition cost (CAC), focus on active, monetized users rather than just sign-ups, as many may drop off shortly after registration. This ensures you're tracking the cost of retaining valuable users.