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I think referrals definitely tend to be better - at least at my company, the referrals are usually expedited to interviews vs the cold applicants that need to be screened. The caliber of candidates tends to be better too
Referrals always trump applying to random jobs where no one knows you, so you should always be networking. I would focus on networking 60% of the time and searching for jobs and applying about 40% of the time.
Referrals over cold applications any day.