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Growth Loops vs Funnels
Part of the Product Management Roadmap
In short
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).
How to learn this
- 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).
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