The Three Traffic Sources For Startups

I was recently re-reading Randall Stross’s book, The Launch Pad: Inside Y Combinator, Silicon Valley’s Most Exclusive School for Startups. Inside is a quote from Y Combinator co-founder Paul Graham about growth rates for start-up

A good growth rate during YC is 5-7% a week. If you can hit 10% a week you’re doing exceptionally well. If you can only manage 1%, it’s a sign you haven’t yet figured out what you’re doing. A 5%-7% weekly growth rate is extremely aggressive but if you want your start-up to get traction in the market, it’s a good growth number to aim for..

Paul Graham

Y Combinator

The big question then is “How do you do that”? There are three sources of website traffic for a startup. In order to be successful and meet Paul Graham’s growth target you need to master at least one of these, if not two of these traffic sources.

Rented or Paid Traffic

The first traffic source that most start-ups use is paid traffic. Paid traffic gives you time to allow your other traffic channels to grow and evolve. It allows you to get product market fit, find those first customers, and find out if you have product market fit.

The most common paid traffic sources are Google Adwords (PPC), Facebook ads, display ads, retargeting, paid influencers, and paid content promotion.

With paid traffic, you can contribute content and engage with the audience. You might be able to control the conversation, but you do not own anything else (data, relationship, creativity, etc. etc.). Hence the name rented traffic.

Without the initial steady stream of visitors from paid traffic, you might never get enough data to growth hack your way to success. That is why paid traffic is many startups’ most important traffic source. Over time, that might change, but it is rare to see a startup succeed that does not buy its initial visitors.

Owned Traffic

The second most common traffic source is owned traffic. Owned traffic is traffic from properties that you own. You own the customer relationships. You make the decisions around content, creativity, and evolution. The more owned properties you have, the more chances you can drive traffic to your website.

Examples of owned properties are websites, blogs, and customer forums. Social media properties like Facebook, LinkedIn, Pinterest, and Twitter can also be considered “owned sites”.

One of the most overlooked traffic sources is your email list. You have total control over the timing of the messages you send to your subscribers. And when you click “send,” your messages get delivered straight to them.

The challenge for start-ups is that owned traffic takes time. It takes time to organically grow a following via social media or build an email list. That is why owned traffic is usually the second traffic source that startups tackle.

Earned Traffic

The third traffic source is Earned or influenced traffic. This traffic is online word of mouth, usually seen in the form of mentions, shares, reposts, reviews, recommendations, or content picked up by 3rd party sites. It is a traffic source that you cannot directly control. For example, you cannot directly control whether people will “Like” you on Facebook, follow you on Twitter, and then visit your website and become your customer.

Nor can you control whether a piece of content you have produced goes viral. Earned traffic also includes organic traffic from search engines. Traffic from organic search is considered earned traffic as you cannot control how much traffic the search engines can send you. But like other influenced traffic you can impact this by following SEO best practices. The challenge for startups with earned traffic is that it is too difficult to predicate, especially in the early stages.

You cannot build a growth strategy hoping that you make it to the front page of Hacker News or Business Insider. This is usually the third traffic channel that startups focus on.

Frequently Asked Questions About Traffic Sources For Startups

What is the best traffic source for startups?

There’s no one-size-fits-all answer, as the best traffic source depends on your startup’s unique needs. If you need immediate results and have a budget, paid advertising gets your brand in front of your target audience quickly. If you’re prioritizing long-term growth, focus on owned channels like your website and email list. Earned traffic, while harder to control, provides strong social proof and can be fueled by excellent content and engagement. Often, a mix of strategies is the most effective way to grow.

How much does it cost to use paid traffic sources?

Paid traffic costs vary wildly depending on the platform, your industry, and the keywords you target. Some platforms use a cost-per-click (CPC) model, meaning you pay each time someone clicks your ad. Others use a cost-per-thousand-impressions (CPM) model where you pay for visibility. It’s essential to research typical costs in your niche and create a budget before launching campaigns.

How can I get people to share my content on social media?

The key to social sharing is providing value. Create content that’s genuinely useful, informative, or entertaining. Make it visually appealing and optimize it for each social platform’s format. Promote sharing by directly asking your audience and using relevant hashtags. Finally, engage with your community – respond to comments, share others’ content, and be an active participant in conversations on your chosen platforms.