The cost of ads killed my last two companies

I will probably always be in the consumer space, but am looking for alternative ways to grow an initial userbase at a sustainable rate. One interesting approach I'm looking at is referrals. Similar to Pinduoduo in China.

They basically proved that alternative models like group-shopping can reduce cost per acquisition by boosting the incentive behind referring friends. So instead of buying an item for the listed price directly, I have the option to get it for a discount under the condition that I can bring another X people to also buy it within a set time period.

Do you think this approach is possible in the western market?