Growth Loops vs Funnels

Summary

A funnel is a linear path from awareness to conversion; a growth loop is a self-reinforcing cycle where the output of one user's action becomes the input that brings in the next (e.g. referrals, user-generated content).

• 1Diagram the growth loop behind a viral product you know (e.g. Dropbox's referral program).
• 2Identify whether a product you use grows mainly through funnels or loops.
• 3Learn why loops tend to compound while funnels need constant new input (ad spend, etc).