Referrals Beat Paid Ads

Nick shares a story about discovering his company was focused on the wrong growth channel.

"One of my companies was spending upwards of $150,000 on paid ads a month. We realized that our ROAS is barely breaking even. We calculated it down to the profit and realized that that piece of the company was making us maybe $15,000 to $20,000 a month in profit.

And we were spending tons of executive time and energy to try to get that to work. And we looked at our other part of our revenue stream and it said referrals. Referrals coming in the door were generating $250,000 of profit per month on maybe $30,000 of referral fees and discounts.

We asked ourselves: what would happen if for six months our entire executive team laser focused on growing that referral number? Do we think that we'd be better off than the last year and a half we've been trying to slam a round peg into a square hole?

It's unbelievable. The job of a CEO sometimes is literally just to tell your team no and to get them focused on what's already working."