Why paid marketing sucks, Network effects and Viral Growth

ANDREW CHEN: If you’re using paid advertising channels, things tend to get more expensive over time because — you know, your initially super, super excited core demographic of customers — like they’re gonna convert the best and as you start reaching into different geographies, different kinds of demos, all of a sudden they’re not gonna convert as well, right?

JEFF JORDAN: You want to understand how much of the acquisition is coming from purely organic (people discovering it, people talking to each other), as opposed to, having over 50% of their acquisition coming from paid marketing and that tells you something that you’re, you know, needing to spend that much money to get people in the door. CLICK HERE FOR PODCAST

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Harry Joiner

Harry Joiner is an executive recruiter for marketing and ecommerce. He has been interviewed by Success Magazine and has appeared in the The Wall Street Journal, MarketingSherpa's "Great Minds in Marketing" series, BusinessWeek, USAToday.com, Internet Retailer, and more.