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How to Explain Growth Loops to Your Grandmother (and What You Actually Do at Work)
- Juan Pablo Camacho
- Feb 13
- 2 min read
What Are Growth Loops?
Every time someone new joins my team, I use this simple analogy to explain what we do. Growth loops are like cycles that keep bringing in more users without us having to start from scratch every time. Unlike traditional funnels that feel like a straight path to a dead-end, growth loops feed themselves, making everything more efficient over time.
How Does a Growth Loop Work?
Imagine you have a bucket, and your goal is to fill it with water. The first thing you do is find a water source and start pouring. But then—surprise!—you realize there's a small hole at the bottom, and water is leaking out.
So what do you do? Instead of just dumping more water in, you start optimizing:
You increase the water flow to fill the bucket faster.
You patch up the hole to keep more water inside.
You make sure no new holes appear to keep everything running smoothly.
This is exactly what my team and I do every day. The water represents new users, the hole represents churn (users leaving), and the bucket is our product. Our job is to bring in more users efficiently, keep them around longer, and fix anything that causes leaks.
Why Are Growth Loops Better Than Funnels?
A traditional funnel is like filling a bucket that just drains out the bottom. You work hard to bring people in, but once they’re through, that’s it. Growth loops, on the other hand, keep the cycle going by making users part of the process. Some examples:
Referral programs – Users invite friends, bringing in more users.
Content loops – Users create content that attracts others.
Network effects – The more users, the more valuable the product becomes.
How Do You Build a Growth Loop?
To make sure the bucket keeps filling up instead of constantly leaking, we focus on:
Finding the best water source (acquiring new users efficiently).
Fixing leaks (reducing churn and improving user experience).
Scaling what works (making the water source bigger and more sustainable).
Repeating the process (because growth is never “done”).
Final Thoughts
Growth loops are the secret sauce to sustainable and scalable growth. Instead of constantly chasing new users, we build systems that make growth happen naturally. So next time someone asks what I do, I just tell them: I make sure our bucket fills up and doesn’t leak too much!
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