growth-loops

name	growth-loops
description	Identifies and designs growth loops (flywheels) for sustainable traction — evaluating 5 loop types: Viral, Usage, Collaboration, User-Generated, and Referral. Use when designing growth mechanisms or reducing reliance on paid acquisition. Triggers on: growth loop, flywheel, viral loop, referral program, product-led growth, PLG, user acquisition, growth strategy, retention loop, compounding growth.

Growth Loops

Core Philosophy

Paid acquisition is a leaky bucket. Growth loops are a flywheel. The difference: in a paid model, growth stops when spending stops. In a loop model, each user or action generates the next one — the system compounds.

The goal is not to have the most impressive loop — it's to identify the one loop that is most natural to your product and build it first. One well-executed loop beats three half-built ones.

When to Use

• When designing the product growth model for a new product
• When paid acquisition costs are too high relative to LTV
• When defining how a new feature drives retention or acquisition
• When analyzing why a competitor is growing faster than their ad spend explains

The 5 Loop Types

1. Viral Loop

Users create content or output in-product, share it externally, and new users arrive.

• Mechanism: User creates → shares on external platform → new users discover and sign up
• Examples: Figma design links, Loom video shares, Canva published posts
• Strength: Exponential if content is naturally shareable
• Required: Shareable output that makes sense to share (not just a dashboard screenshot)

2. Usage Loop

Using the product more generates more value, which increases engagement and referrals.

• Mechanism: More usage → more personalized/valuable output → more engagement → more sharing
• Examples: Spotify's Wrapped, Duolingo streaks, GitHub contribution graphs
• Strength: Directly tied to product value — growth is proof of engagement
• Required: Product creates visible or shareable proof of value over time

3. Collaboration Loop

Users invite colleagues to work together, expanding the user base within organizations.

• Mechanism: User creates → invites colleagues to collaborate → colleagues experience product value
• Examples: Google Docs, Figma, Notion team spaces, Slack channels
• Strength: Deep organizational penetration + strong retention (hard to leave if your team is there)
• Required: Core value increases with more collaborators

4. User-Generated Content Loop

Users discover content from other users, create their own, and share it — driving discovery and creation.

• Mechanism: User discovers others' content → creates own content → shares → others discover
• Examples: TikTok, Pinterest, YouTube, Notion templates gallery
• Strength: Content flywheel — existing content attracts creators, creators attract viewers
• Required: Critical mass of quality content to sustain the loop

5. Referral Loop

Users refer others in exchange for rewards, recognition, or social currency.

• Mechanism: User refers → referred user joins → referrer earns reward → cycle continues
• Examples: Dropbox storage bonuses, Airbnb credits, PayPal signup bonuses
• Strength: Directly incentivized, measurable ROI
• Required: Strong enough incentive to motivate action without destroying unit economics

Workflow

1. Define Your Product's Core Action

What is the one action users take that creates value? (Share a design, complete a task, invite a contact, post content.)

2. Evaluate Loop Fit

For each of the 5 loop types:

• Is the core action shareable? → Viral / Usage / UGC Loop
• Does value increase with more users? → Collaboration Loop
• Is the incentive strong enough to motivate referral? → Referral Loop

Score each loop 1-5 for fit. Pick the top 1-2 to build first.

3. Design Loop Mechanics for Your Top Loop

• Trigger: What prompts the sharing or invitation action?
• Incentive: What motivates the user to complete the action? (Intrinsic: pride, convenience. Extrinsic: reward, recognition.)
• Friction: What could prevent the action? Remove it.
• Conversion: What % of invites/shares convert to new active users?
• Cycle time: How long does one loop iteration take?

4. Estimate the Loop Coefficient

Coefficient K = (Invites per user) × (Conversion rate)

• K > 1: Exponential growth
• K = 0.5-1: Strong growth boost, not standalone
• K < 0.5: Loop is present but minor

5. Define the Build Plan

• What's the smallest change to the product that activates this loop?
• What does "loop is working" look like in metrics?
• What's the 90-day measurement plan?

Output Format

## Growth Loop Design — [Product Name]

### Core Product Action
[The one thing users do that creates value]

### Loop Evaluation
| Loop Type | Fit (1-5) | Key Condition | Verdict |
|---|---|---|---|
| Viral | | | Build / Maybe / Skip |
| Usage | | | |
| Collaboration | | | |
| User-Generated | | | |
| Referral | | | |

### Primary Loop: [Loop Type]
- Trigger: [What prompts sharing/inviting]
- Incentive: [Why users take the action]
- Friction removed: [What we'll make easier]
- Estimated K coefficient: [X]

### Build Plan
- MVP change to activate loop: [Description]
- Success metric: [What we measure]
- 30-day goal: [Specific number]

Antipatterns

• Building all 5 loops: Spreading effort across every loop type before any one is working. One loop at K=0.8 is more valuable than five loops at K=0.1 each.
• Extrinsic incentives for intrinsic actions: Paying users to share something they'd share anyway dilutes authenticity and increases cost without increasing conversion.
• Ignoring cycle time: A viral loop that takes 6 weeks per cycle is effectively not a loop. Minimize the time between trigger and new user activation.
• Copying Dropbox blindly: Referral loops only work if the reward is meaningful relative to the product's value. A low-value product with a low-value reward won't convert.
• No measurement: Building a loop without defining the K coefficient metric means you can't tell if it's working.