What US Mobile’s Crazy Marketing Move Can Teach You About Referral Marketing
If Google Ads suddenly cut you off tomorrow—turned off every campaign, blocked future spend, and deleted your account—would your business keep growing?
That’s the question Ahmed Khattak, CEO of US Mobile, found himself asking after another day of watching his paid ads costs climb to dizzying heights. Sure, the clicks were coming in, but were they truly driving growth? Or was Google just a middleman charging a hefty toll for traffic US Mobile would have earned anyway?
There was only one way to find out: cut all Google Ad spend and watch what happened next. That’s precisely what Khattak did in October 2024, and by December, US Mobile had added 50,000 new users on just 50% of their previous marketing budget. Organic traffic and word-of-mouth replaced costly clicks, proving that investing in better products and stronger customer relationships is just as effective as “renting your audience” from Google—and it comes without the price tag.
Inspired by this story of customer-led growth, Extole’s CEO, Matt Roche, sat down with Khattak to understand what led him to ditch Google once and for all. Here’s what he discovered:
Three Reasons You Might Be Stuck on The “Paid Ads Plateau”
The same month US Mobile slashed its Google Ads budget to $0, the company hit $100MM in ARR. Organic clicks soared, and click-through rates nearly doubled to 50%. Their growth didn’t happen despite marketing budget cuts—it was a direct result of them.
If your marketing strategy is still overly reliant on paid search, you might be facing the same invisible roadblocks that led US Mobile to make such a bold shift. Here’s what’s keeping many brands stuck in an expensive, low-yield cycle:
- You’re Paying For Traffic You Should Be Earning
Your paid search numbers might look impressive on paper, but how much of that traffic do you really need to be buying? Many brands routinely bid on their own brand name or high-intent keywords, only to cannibalize organic results. Layering paid ads on top of SEO feels like a smart hedge, but in some cases, you’re paying for what you’ve already earned. - You’re Paying Too Much to Acquire the Wrong Customers
Ten years ago, search ads delivered a strong return with a $20-50 average CPL, depending on industry–a sustainable investment for most businesses. The calculation looks a bit different in 2025: $70-100 CPLs are the norm for Google Ads, with paid ad platforms like Meta and LinkedIn seeing even steeper cost increases. While costs have risen, growth has not. Paid traffic numbers are dwindling as keyword bidding becomes increasingly competitive, and clicks that do convert are often low quality. Most treat these rising costs as the price of doing business, but do we have to accept it? - You’ve Fallen Under The Spell of “Big Tech”
If Google Ads are so overpriced and ineffective, why is everyone still doing it? In short, they think they don’t have a choice. Google, Meta, and other tech giants have deliberately and methodically taken over the internet, inserting themselves between businesses and their customers. Whether you want to run an ad campaign, sell your products, or simply be found online, you’re expected to pay a toll to get there. This mindset is the real trap: while the big tech tax is very real, it is not the only way. Brands like US mobile have proven that when you stop renting reach and start building relationships, your customers will find you. Channels like referral marketing can help by delivering lower costs, higher retention, and growth that compounds.
The Real Key to Sustainable Growth? Stronger Customer Relationships
If you want to acquire high-value customers while paying less to reach them, the first step is simple: invest in your relationship with the customers you already have.
When you treat customers like transactions, you’ll attract transactional buyers–one-time purchasers with no real brand loyalty. On the other hand, when customers feel genuinely seen, valued, and appreciated by your brand, something powerful happens. These customers will stick around longer, spend more over time, and have the power to become your most effective growth engine by bringing new customers with them.
This is exactly what Khattak realized when he shut off Google Ads. Though US Mobile’s traffic dipped briefly, user growth kept rising. Potential customers were still finding them through organic search and customer referrals. Khattak kept that growth compounding by investing in product quality and customer satisfaction. Word-of-mouth nearly doubled, all thanks to building a brand—and a community—worth talking about.
How You Can Also Ditch Google Ads and Still Be Successful
Instead of throwing money at Google Ads and waiting for clicks, focus on building loyalty. Ask yourself:
- Who are your best customers?
- Are they talking about your brand online?
- Are you giving them a reason–and a reward–to keep sharing?
Chances are, your happiest customers are already advocating for you (for free!). Your task is to find them and show them how much you value them through compelling referral incentives. When you offer a $20 or even $50 reward for every successful referral, you’re spending less money to acquire a new customer AND all the money goes into your customers’ pockets—not Google’s.
Referrals don’t need to account for all your customer growth, but they should make up at least 10% of all your new customers. If you’re not at 10% yet, you’re missing a valuable marketing channel.
It does not take long to see the impact of referral marketing—referred customers deliver 15% more profitability than non-referred customers, and the more of them you get, the more referrals you’ll generate. A base of loyal, appreciated customers can become a self-sustaining growth engine.
Take Customer Loyalty to the Next Level With Referral Marketing
The lesson from US Mobile is clear: paid media dependency is a thing of the past. The companies that thrive will be the ones that stop throwing money at big tech and start investing it back into their product and their customers.
At Extole, we give businesses the tools to build referral programs that turn their happiest customers into their most powerful growth engine. Request a demo to learn more about how Extole powers sustainable, customer-led growth.
Listen to the full conversation between Extole CEO Matt Roche and US Mobile CEO Ahmed Khattak.
