Read the original at Lenny’s Newsletter ↗lennysnewsletter.com · subscriber post
By Lenny Rachitsky · lennysnewsletter.com · @lennysan on X · YouTube · LinkedIn
Lenny Rachitsky catalogs over thirty examples of 'magical growth loops,' where new users come mainly from existing users rather than paid acquisition. He groups them into four types: supply driving demand, demand driving supply, demand driving demand, and supply driving supply, each with real company examples such as DoorDash, Faire, Dropbox and Airbnb.
Subscriber post — summary only01Key takeaways
- Growth loops where existing users recruit new users can sharply reduce acquisition costs.
- Marketplaces can recruit one side and let that side bring in the other side for free.
- Look for a supply side with a clear incentive to bring in demand, and vice versa.
- Virality is only one form of magical loop; referral programs and passive sharing also count.
- Brainstorm whether your product has a latent loop by mapping how each user type could recruit another.
02Frameworks mentioned
Summary and takeaways written by PM Atlas; quotes are short excerpts. © the original author.