#Customer #Acquasition #Growth
The 3 Growth Levers to Pull When
Paid Ads Stop Working
Paid Ads Stop Working
#Customer #Acquasition #Growth
The 3 Growth Levers to Pull When Paid Ads Stop Working
For many Seed and Series A startups, the first wins come from paid acquisition. It’s measurable, scalable, and often exactly what investors want to see.
But there’s a problem: paid channels rarely scale forever. Customer acquisition costs (CAC) rise, creative fatigue sets in, and what once looked like a growth engine suddenly becomes a money pit.
The founders who survive this shift are the ones who build growth strategies that don’t rely on paid ads alone.
But there’s a problem: paid channels rarely scale forever. Customer acquisition costs (CAC) rise, creative fatigue sets in, and what once looked like a growth engine suddenly becomes a money pit.
The founders who survive this shift are the ones who build growth strategies that don’t rely on paid ads alone.
For many Seed and Series A startups, the first wins come from paid acquisition. It’s measurable, scalable, and often exactly what investors want to see.
But there’s a problem: paid channels rarely scale forever. Customer acquisition costs (CAC) rise, creative fatigue sets in, and what once looked like a growth engine suddenly becomes a money pit.
The founders who survive this shift are the ones who build growth strategies that don’t rely on paid ads alone.
But there’s a problem: paid channels rarely scale forever. Customer acquisition costs (CAC) rise, creative fatigue sets in, and what once looked like a growth engine suddenly becomes a money pit.
The founders who survive this shift are the ones who build growth strategies that don’t rely on paid ads alone.
Why Paid Alone Isn’t Enough
- Costs climb as competition bids up the same keywords and audiences.
- Retention gaps get hidden by constant new-user inflow.
- Investor pressure often pushes teams to scale spend before PMF is solid.
Why Paid Alone Isn’t Enough
- Costs climb as competition bids up the same keywords and audiences.
- Retention gaps
get hidden by constant new-user inflow. - Investor pressure often pushes teams to scale spend before PMF is solid.
The result? Growth curves that look impressive short-term, but fall apart when spend slows down.
The result? Growth curves that look impressive short-term, but fall apart when spend slows down.
The 3 Levers of Sustainable Growth
When ads plateau, here’s where you should turn:
-
Retention Curve Test
Your product itself should drive adoption. That means:- Onboarding loops → guiding new users to value as quickly as possible.
- Referral mechanics → incentives or natural sharing built into the product.
- Retention before acquisition → make sure cohorts stick before chasing scale.
Example: Duolingo mastered gamified streaks and notifications, creating daily habits that reduced reliance on ads. -
Community & Content
Founders underestimate how powerful owned demand can be:- Community → Slack groups, Discords, or IRL meetups that connect users with each other.
- Content → Playbooks, resources, or storytelling that position you as the go-to brand.
- Evangelists → empowering your most loyal users to spread the word.
Example: Notion didn’t just market their product—they nurtured a global community of template creators and superfans. -
Partnerships & Distribution Hacks
Sometimes the fastest way to grow is to borrow someone else’s audience:- Strategic partnerships with complementary products.
- Platform distribution (e.g., app stores, integrations, marketplaces).
- Cross-promotions with startups chasing similar users.
Example: Calm scaled quickly by partnering with employers and insurers, distributing through non-obvious but high-volume channels.
When ads plateau, here’s where you should turn:
- Retention Curve TestYour product itself should drive adoption. That means:
- Onboarding loops → guiding new users to value as quickly as possible.
- Referral mechanics → incentives or natural sharing built into the product.
- Retention before acquisition → make sure cohorts stick before chasing scale.
Example: Duolingo mastered gamified streaks and notifications, creating daily habits that reduced reliance on ads. - Community & ContentFounders underestimate how powerful owned demand can be:
- Community → Slack groups, Discords, or IRL meetups that connect users with each other.
- Content → Playbooks, resources, or storytelling that position you as the go-to brand.
- Evangelists → empowering your most loyal users to spread the word.
Example: Notion didn’t just market their product—they nurtured a global community of template creators and superfans. - Partnerships & Distribution HacksSometimes the fastest way to grow is to borrow someone else’s audience:
- Strategic partnerships with complementary products.
- Platform distribution (e.g., app stores, integrations, marketplaces).
- Cross-promotions with startups chasing similar users.
Example: Calm scaled quickly by partnering with employers and insurers, distributing through non-obvious but high-volume channels.
Building a Balanced Growth Engine
Relying solely on paid is like building your house on rented land. The moment the rent spikes, your foundation crumbles.
Instead, think of growth as a portfolio:
- Paid ads can be a booster,
- but PLG, community, and partnerships create the enduring engine.
Building a Balanced Growth Engine
Relying solely on paid is like building your house on rented land. The moment the rent spikes, your foundation crumbles.
Instead, think of growth as a portfolio:
- Paid ads can be a booster,
- but PLG, community, and partnerships create the enduring engine.
Seed and Series A is the stage to experiment, test, and embed these levers - before scaling headcount and spend.
Seed and Series A is the stage to experiment, test, and embed these levers - before scaling headcount and spend.
Quick Take
We’re entering an era where organic demand and authentic user pull matter more than ever. Investors are asking not just “How fast are you growing?” but “How much of this growth is repeatable and efficient?”
Quick Take
We’re entering an era where organic demand and authentic user pull matter more than ever. Investors are asking not just “How fast are you growing?” but “How much of this growth is repeatable and efficient?”
If your paid channels are flattening - or if you’re worried they might - we help founders design sustainable growth systems that don’t depend on an endless ad budget.
If your paid channels are flattening - or if you’re worried they might - we help founders design sustainable growth systems that don’t depend on an endless ad budget.
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