Hernan Vazquez argues that referrals and organic SEO traffic, while high-quality, don't scale. Paid ads like Facebook and YouTube generate bigger volume but lower-quality leads. Successful businesses need separate strategies for each source instead of treating all leads the same.
There's a lot of people that come to us and tell us, you know, I tried Facebook ads in the past. I tried YouTube ads. I tried paid advertising in the past, but the quality of the leads wasn't there. So we decided to stop that and we decided to focus on referrals. We decided to focus on SEO. We decided to focus on organic stuff and whatnot. Now, let me tell you something right now is that if you're comparing your referral process, let's say that you're getting referrals, or if you're comparing the organic traffic that you get to through, let's say, SEO, people searching for something and then showing up on your website, you're going to be comparing the quality of those leads and the mechanism that you use to turn those leads into customers. You're comparing apples to oranges. Why? Because referrals might be 1 or 2 good closes, right? You hop on the phone with somebody that got recommended by somebody else, boom, and you close them, right? And that's the easy way. Now, the problem with referrals and organic is that they don't scale as much. You need to think about this. You need to think about having a different strategy and a different machine, whether people are coming from your paid advertising or whether people are coming from organic or referrals.
