Harnessing growth loops in marketplaces

A growth loop is a self-reinforcing system in which each new user brought in by the loop helps to drive additional growth. In order to create a high leverage growth loop, you need to identify the key hooks and triggers that will cause users to take action and then design a system that amplifies those hooks and triggers.

For example, in a two-sided marketplace, one hook might be the ability to find a mentor who can help you learn new skills. The trigger might be when you reach a certain level of expertise. The amplification might come from a mentorships being listed on the site as opportunities that other users can apply for. By understanding how growth loops work, you can create systems that generate sustained and powerful growth.