A lot of comments here from people who think this is "obvious" but have probably never been personally responsible for monetizing and scaling a product. If you run referral programs you will often drive meaningful incremental revenue, and founders/investors etc. will push for more.

Actually scaling a product successfully requires a lot of testing/pricing/segmentation. Crucially, advertising is the most expensive way to acquire a new user. If every high quality user refers >1 other net new high quality user, you cut your CAC in half. Well-run referral programs for the right type of product can be lucrative, but countering the narrative that every product needs to have one is probably a good thing.