Product-led growth · Growth loops
Growth loops: how each user brings the next
Growth loops are cycles where the result of one user's action brings in the next user. Someone joins, does something useful, and that action draws in someone new. Reforge, the growth training company, describes loops as closed systems where the output of one cycle is put back in as the input.
Growth loops vs funnels
Brian Balfour and his co-authors at Reforge made the case in their 2018 essay "Growth Loops are the New Funnels". A funnel runs one way and ends. A loop feeds itself.
A funnel ends
You pour people in the top. Some buy. To get more, you pour in more, and pay each time.
A loop repeats
Each new user does something that brings in another. The work you did once keeps paying off.
You can have both
Ads and content can still fill the top. The loop means each person you win is worth more.
Four types of growth loop
Viral loop
Users invite or share, and the people they reach sign up. More on this below.
Content loop
Users make something public, like a profile, a page or a result. Others find it and join.
Paid loop
Money from customers funds ads, which bring more customers. It works only if each one earns more than they cost.
Sales loop
Happy users inside a company pull in their team, then the whole company buys.
What is a viral loop?
A viral loop is a growth loop where users bring in other users just by using the product. Dropbox is the well-known example. It gave extra storage to both the person who invited and the friend who joined.
Sharing is part of the job
The best viral loops don't ask for a favour. Sharing is how the product works, like sending a booking link.
Both sides win
The person who shares and the person who joins each get something.
It's easy
One tap to share. One step to join.
Growth loops for experts who sell a program
Your clients already talk about their results. A product can make that easy and give it a path back to you.
The shared result
A client finishes a step and gets a score or a report they can share. It carries your name and a link.
The team invite
One person uses your method, then invites their team or their partner to do it with them.
The referral reward
A client who sends a friend gets a bonus session or a free month. So does the friend.
How to build your first growth loop
- 01
Find a moment of pride
When does a client feel a win? That's when they want to share.
- 02
Give them something to share
A result, a badge, an invite. Make it look good and carry a link.
- 03
Make joining simple
The person who clicks should get a first win of their own, fast.
- 04
Measure it
Count how many new users each user brings. Fix the weakest step.
Your next step
The Software Plan Workshop
We design the loop into your product plan from the start, so it's not an add-on later.
- A written software plan
- A clickable prototype you can show people
- The first-version scope, ready to quote
- The $5,000 comes off the price of a build
- Price
- $5,000
- If you build with us
- Credited to the build
Fixed price. You know what to build and what it costs before you spend on a build.
★ Keep reading
More in the product-led growth guides
Product-led growth
The main guide: PLG for experts who sell a program.
Read more →The freemium model
A free plan gives a loop more people to work with.
Read more →Onboarding and time to value
A loop only works if new users get a win fast.
Read more →From course to platform
How a course becomes a product people use every week.
Read more →Questions, answered
What are growth loops?
Growth loops are cycles where one user's action brings in the next user. Reforge describes them as closed systems where the output of one cycle is put back in as the input for the next.
What is the difference between a growth loop and a funnel?
A funnel runs one way. People go in the top and some come out as customers. A loop feeds itself. Each new customer does something that brings in another.
What is a viral loop?
A viral loop is a growth loop where users bring in new users by sharing or inviting. Dropbox is the classic case. It gave extra storage to both the person who invited and the friend who joined.
Do growth loops work for small businesses?
Yes. You don't need millions of users. A simple referral reward or a result clients can share is a growth loop. Start with one and measure it.
How do I measure a growth loop?
Count how many new users each user brings in over a set time. Then look at each step: how many share, how many click and how many join. Fix the weakest step first.
Can a coaching program have a growth loop?
Yes. Put a shareable result in your product, like a score or a finished plan with your name on it. Add an easy invite. Each client's win becomes a way for the next client to find you.