Pros and Cons of putting your marketing efforts toward direct response advertising vs building and nurturing your referral network

Direct Response Pros: can target a single customer avatar and focus your product development around that specific avatar, could improve brand recognition, potentially quick returns

Direct Response Cons: expensive, diminishing returns, could be tough to differentiate from competitors in a quick ad

Referral Network Pros: generates re-occurring revenue, can be easier to come up with unique ideas to add value to your referral partners, inexpensive, easy-to-find audience

Referral Network Cons: time-intensive, there will likely be multiple types of customers to cater towards