Growth Loops

Overview

Identify and design growth loops (flywheels) that create sustainable traction. This skill evaluates five proven growth loop mechanisms to reduce reliance on paid acquisition and build product-led growth.

When to Use

Designing growth mechanisms for a product
Building sustainable viral or referral traction
Reducing reliance on paid acquisition
Analyzing competitor growth strategies
Optimizing product for product-led growth

The 5 Growth Loop Types

1. Viral Loop

Product content created by users gets shared on external platforms, bringing new users back to the product.

Mechanism: Users create content in-product → Share on social/external platforms → New users discover and signup
Example: Figma designs shared as links, Loom videos shared in emails
Strength: Exponential user acquisition if content is inherently shareable
Challenge: Requires highly shareable output and strong incentive to share

2. Usage Loop

Users create content or value within the product, then share it, which invites new users or drives re-engagement.

Mechanism: User creates → Shares creation → Others consume → Become engaged users
Example: Twitter threads, Medium articles, Notion templates shared publicly
Strength: Growth tied directly to product usage and network effects
Challenge: Requires content creation friction to be very low

3. Collaboration Loop

Users invite colleagues to co-create or collaborate within the product, expanding the user base within organizations.

Mechanism: User creates → Invites colleagues for collaboration → Colleagues discover product value
Example: Google Docs invitations, Figma team projects, Slack channels
Strength: Deep organizational penetration and high retention
Challenge: Works best for collaborative/team-based products

4. User-Generated Loop

Users discover new content or features through other users' creations, then create and share their own content.

Mechanism: User discovers content → Creates similar content → Shares creation → Others discover
Example: TikTok, Pinterest, YouTube trends driving creator participation
Strength: Creates content flywheel and network effects
Challenge: Requires critical mass of quality content to sustain

5. Referral Loop

Users invite other potential users in exchange for rewards, incentives, or social recognition.

Mechanism: User refers → Referred user joins → Referrer gets reward → Shares more referrals
Example: Dropbox referral bonus, Uber rider referrals, PayPal signup bonuses
Strength: Directly incentivizes acquisition; easy to measure ROI
Challenge: Requires valuable incentive without eroding unit economics

How It Works

Step 1: Define Product Value

Clarify the core value users experience:

Primary action users take in your product
Value created per user action
Network effects present (if any)
Friction points in the experience

Step 2: Evaluate Loop Fit

Assess which growth loops align with your product:

Product type (collaborative, content-based, utility, etc.)
Target user behavior and sharing habits
Network effects already present
Existing user base and engagement

Step 3: Design Loop Mechanics

Create specific loop implementation:

Trigger that initiates sharing or invitations
Incentive for participation (intrinsic or extrinsic)
Ease of sharing mechanism
Conversion rate from invite to activation
Frequency of loop repetition per user

Step 4: Calculate Loop Coefficient

Estimate growth velocity:

Invites/shares per user per cycle
Conversion rate of invites to new users
Net new users per cycle
Time per cycle iteration

Step 5: Build the Loop

Implement the highest-leverage loop first:

Start with the most natural loop for your product
Optimize messaging and friction
Measure loop metrics and conversion rates
Compound results over time

Input Format

Use $ARGUMENTS to pass:

Product description and primary user action
Target user demographics and behavior
Existing sharing/collaboration features
Current growth channels and metrics
Constraints or opportunities

Output

A growth loops analysis including:

Ranked evaluation of all 5 loop types for your product
Recommended primary growth loop with implementation plan
Secondary loops to layer over time
Key metrics and measurement framework
30-60-90 day implementation roadmap
Potential loop coefficient and growth projections

Framework

Based on growth loops research by Ognjen Bošković. Focuses on compounding user acquisition through built-in, product-native sharing and collaboration mechanisms.

Tips

Start with one loop and master it before adding complexity
Viral loops compound fastest but take time to build
Collaboration loops create strongest retention and LTV
Measure loop health weekly during optimization phase
Combine loops for multiplicative effect once operating at scale

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