Growth loops are self-reinforcing cycles where the output of one step feeds back as input, creating compounding growth. Unlike linear funnels (where each dollar in produces a fixed result), loops generate increasing returns over time. Three types: (1) Viral loops (users invite users), (2) Content loops (content attracts users who create more content), (3) Data loops (usage generates data that improves the product).
For AI products, the data loop is the most powerful: more users → more data → better AI → more users. This is YOUR strongest growth loop.
Key Takeaways
- Growth loops > linear funnels for sustainable growth.
- Data loops are the strongest moat for AI products.
- Measure loop cycle time and amplification factor.
- Actively invest in accelerating the loop.