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Viral Loop, Growth Loop, Referral Engine

"Acquisition Flywheels"

Overview

The Core Concept

An Acquisition Flywheel is a growth model that leverages the momentum of happy customers to drive further acquisition. Unlike a traditional "funnel" which requires constant energy (money/effort) to pour into the top, a flywheel stores energy.

When a customer completes an action (like sharing a referral link, inviting a teammate to a collaboration tool, or creating public content), they effectively market the product to new people. This creates a loop: Acquisition -> Activation -> Referral -> Acquisition.

Why It Matters

  • Lowers CPA: As the flywheel spins, a significant portion of new users comes from "free" sources (existing users), drastically lowering the blended Cost Per Acquisition.

  • Compounds Growth: Funnels produce linear growth; Flywheels produce exponential growth.

  • Higher Quality Leads: Users referred by friends or peers typically have higher retention rates and lifetime value (LTV).

Best Practices

  • Incentivized Referrals: giving users a clear benefit (credits, upgrades) for bringing in others (e.g., Dropbox).

  • Viral Loops: Building sharing mechanisms directly into the product usage (e.g., "Sent via iPhone" or watermarked videos).

Advanced Strategy Planner

Convert technical theory into professional action plans

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