Growth Loops
Design closed systems where outputs feed future inputs.
Explanation
While traditional marketing funnels eventually exhaust their effectiveness, growth loops can compound infinitely. In a good growth loop, each user action creates content, data, or network effects that attract more users, who create more value, attracting even more users. The goal is designing systems where growth feeds on itself rather than requiring constant input.
Real-World Example
LinkedIn: User adds profile → Creates public page → Ranks in Google → Professional searches find it → They join to contact → Add their profile. Uber: More drivers → Shorter wait → More riders → More demand → More drivers.
How to Apply
Map your loop: Input (new users) → Action (what they do) → Output (what's created) → Back to input (how output brings users). Measure cycle efficiency: Does one user create >1 new user? Remove friction from loop. Add fuel to fastest spinning part.