Growth Loops

---
name: Growth Loops
description: Engineer compounding growth, not linear spend.
---
# Growth Loops

A funnel is linear: spend → leads → churn, repeat. A growth loop is compounding: the product's output becomes the input that drives the next cycle. Loops scale; funnels decay the moment spend stops.

## Anatomy of a loop
Input → action → output → re-investment as new input. Each turn must produce more output than it consumed, or the loop dies.

## Examples
- **Referral.** Users who love it invite others; new users invite more. (Dropbox.)
- **Content.** Product generates content → ranks in search → brings new users → generates more content.
- **UGC network effect.** More users → more value → attracts more users.

## Engineer, don't hope
- Measure the loop's coefficient. If each user brings in <1 new user, the loop decays; >1 and it compounds.
- Remove friction at the re-investment step — that's where loops stall.