Growth Loop

A self-reinforcing cycle where one user action generates new users or more value, which generates more actions, creating compounding growth without linear cost increases.

Growth loops compound. A funnel is a straight line. The difference between a business that grows proportionally to spend and one that grows exponentially is usually the presence of a working growth loop.

A recipe platform: user creates recipe, platform indexes it for SEO, new user finds it via Google, creates an account, creates their own recipes, more content gets indexed. Every user adds to the SEO moat that attracts the next user.