Growth

Growth Loops

TL;DR: Good growth compounds when usage creates more usage.

Study Order Growth #11 Growth Loops
Why it matters

Loops are stronger than one-way funnels because they reinforce themselves.

How to use it
  • Map what creates the next user or next action.
  • Find the bottleneck in the loop.
  • Prefer retention-fed loops over paid bursts.
Real-life example

A marketplace that adds more sellers creates more selection, which attracts more buyers, which attracts more sellers.

Where people screw it up

Obsessing over top-of-funnel while the rest of the system leaks.

Bottom line

Good growth compounds when usage creates more usage.