growth-loops

# Growth Loop Frameworks ## Overview Growth loops are closed systems where user actions create inputs for acquiring more users, forming self-reinforcing cycles. Unlike linear funnels (ad spend → users), loops compound: users → content → SEO → more users → more content. Reforge's framework: Viral loops, Content loops, Paid loops, Sales loops. ## When to Use - Designing sustainable growth vs. paid acquisition treadmill - Building network-effect products - Content/marketplace businesses - Optimizing user-generated growth ## Core Loop Types **Viral Loop**: User invites → new user signs up → invites others **Example**: Dropbox referrals (both sides get storage), Hotmail signature **Content Loop**: User creates content → SEO/discovery → new users → create content **Example**: Pinterest pins, YouTube videos, Medium articles **Paid Loop**: Revenue → ads → users → revenue (must have positive LTV:CAC) **Example**: E-commerce: Purchase → Facebook ads → purchase **Sales Loop**: Customer success → upsells/references → new customers → success **Example**: B2B: Happy customer → referrals/case studies → enterprise deals ## Design Process 1. **Map User Journey**: Identify where users create value (content, invites, purchases) 2. **Close the Loop**: Connect output back to acquisition input 3. **Optimize Cycle Time**: Faster loops compound faster 4. **Remove Friction**: Maximize % of users completing loop actions **Example**: Yelp loop: Diner → writes review → review ranks in search → new diner finds restaurant → writes review (cycle time: 1 week) ## Example Application **Before (Linear)**: Spend $10K on ads → 1,000 users → done **After (Loop)**: 1,000 users → 100 write reviews → reviews rank for 500 keywords → 5,000 organic users → 500 reviews → 25,000 users (compounding) ## Anti-Patterns - ❌ Confusing growth hacks (one-time tricks) with sustainable loops - ❌ Ignoring loop leakage (% of users not completing loop action) - ❌ Optimizing one part without measuring full loop health - ❌ Treating all growth as equal (loops >>> linear funnels) ## Related - network-effects - viral-coefficients - growth-accounting - compound-effects