Paid ads wont give you any return on investment, due to competitive costs vs brand awareness intrinsically getting you clients. if you have money to invest (blow, and wait a long time to see back) then advertising to build brand awareness however is a good idea. Dont expect dollar for dollar even after a year on clients if you go buy ads.
Customer Referals after providing great service is the #1 way to get clients, but to speed that process up (i.e. hit mass market numbers) you may need to find a niche or vertical to at least conquer first then move into larger audiences. For instance, focus on plumbers, become the #1 hosting company focused on plumbers. (doubt they need vps's but its an example!) and go after that niche market through their national associate publications, news, and other channels.
Yes all of this is spot on.
You can spend money on ads and get traction. However, your ads will have to be essentially giving things away, opting people into crazy giveaways and similar. Never underestimate the public's voluntary participation in getting something freely or deeply discounted or having hopes of winning a new ____item of desire____. See DigitalOcean for a good example of this prior.
Niches remain the best method. Why? Because after you deal with a niche long enough, you should expect and know the customers needs and be able to provide value added and do so at better cost and / or with valuable additional services.
The niche part along with other true and tried must-dos are all part of brand building (which is awareness is the general outcome - awareness that leads to less friction during sales).
Real companies employ full time people - multiple often - to lead their marketing and to deploy the many initiatives. It isn't rocket science, but it is a pile of honest work. There is lots of initial visionary conceptualizing, followed by a formal plan to live by. From the plan come proper schedule(s). Reports, reports, and reports.
If you are working with marketing folks or employ such, initiatives should be working from a plan and that should be able available to you upon demand --- with regularly at most quarterly updates sent your way.
Marketing like any other section of your business can be an underperforming slush fund if left unchecked.
I recommend folks get their sales lead integrated with their marketing department. Too often there is a big divide between the sales folks and marketing. Similar divide between sales and corporate and marketing and corporate. Shouldn't be any 'divisions' but all cohesive and part of one planned co-developed by all three sides (marketing, sales and corporate).
Marketing isn't free. I've long told people to be committed to spend up to 20% of income annually on real marketing initiatives managed by actively involved professionals that intimately understand YOUR business. Sadly most companies go to marketing for the wrong reasons, as reaction and without clear managed approach. This often leads to massive cash burn.
Best examples of cash burn reactionary marketing -
1. Expensive trade shows - because the competition is there. Trade shows pretty much should be avoided unless you are big company with staff to attend such and manage the whole thing like hawks. Such shows are fun and too often double as vacations. Sure you can write off a bunch of the costs, but you can't write on ROI or claim brand building with these shows 80% of the time.
2. Traditional advertising - very expensive and hard to calculate. Doable with right plan and discount media buying. Lucrative, but few understand the mediums today and even harder to find someone that does and can position your business in such.
3. Site XYZ buy in - there are MANY sites vying for sponsorship and ad money. Some can be lucrative, where audited numbers exist and where risk is mitigated and audience is semi-established and clear. Good luck getting such sites to provide that data freely in sales process. Again, lucrative but more of minor player unless niche is total fit with your business and very high in your face clear sponsorship / involvement. Usually good relationship like eats up a lot of human time cycles.
4. SEO - every week I see people running to such with an open wallet. Easy come is easily gone money. Does SEO work? Sometimes. Will what you have done long term damage your brand? It very well might and when it does, you are in for a world of pain and cash spend to clean up the mess. SEO is about the worst reactionary move to slumping sales.
Ideally you see where I am headed. Commit. Plan. Schedule. Report. Slow and steady, indeed.