Growth Loop

A growth loop is a self-reinforcing mechanism in which the output of one cycle feeds the input of the next; for example a new user who brings another new user.

A growth loop replaces the funnel mindset. A funnel is a one-way path that ends at the bottom, and to keep growing you must pour traffic in from the top again; a loop instead returns the output to the input, so growth fuels itself from within. Three common loop families exist: the viral loop where a user brings a user, the content loop where user activity creates discoverable content, and the paid loop where revenue returns to paid acquisition. A loop's power is in its coefficient: if each turn creates more than one fresh input, growth becomes exponential, and if less, the loop dies on its own. The common trap is drawing a pretty loop diagram on paper without its steps actually being measured; a loop whose per-step rates are not gauged is a metaphor, not an engine. Every loop step must have a real metric so it is clear where it leaks.