Growth loop
Definition
A growth loop is a closed, self-reinforcing cycle where the output of one stage of product usage becomes the input for acquiring or activating more users — creating compounding growth without proportional marketing spend.
The concept gained traction as an alternative to the linear AARRR funnel. Funnels describe how users move through stages; loops describe how usage generates more usage.
There are three major loop types:
Viral loops — a user takes an action inside the product that exposes the product to new potential users. Inviting a collaborator, sharing an output that requires the new viewer to sign up, or creating public content that drives organic search.
Content loops — users generate or surface content that drives new users. A review on a marketplace, a public template, a shared document — each piece of content can acquire new users for years.
Paid loops — revenue from converted users funds more acquisition spend, at positive ROI. This is the most common but least defensible loop because competitors can run the same one.
The best growth loops are compounding and defensible. Viral loops that require high-friction user actions are weak. Loops that only work at paid CAC levels competitors can easily match are dangerous.
Designing a growth loop is whiteboard work — mapping the user journey, identifying where sharing or content creation happens naturally, and specifying what input triggers the loop to re-enter. BoardSnap captures those design sessions as structured plans.
Examples
- A shared whiteboard summary that the recipient can only view by signing up
- A public project portfolio where each board links back to the app
- Revenue from Pro subscribers funding paid acquisition at positive LTV:CAC
- A template library where user-published templates drive organic search traffic
Snap a growth loop. Ship its actions.
BoardSnap turns any whiteboard — including this one — into a summary and action plan.