📈 The Secret To Free Marketing

When you ask a business how they grow they’ll probably give you some combo of Facebook ads, content, cold outreach, etc.

Now don’t get me wrong, these are great ways to grow…. But there’s a better way.

A way that new companies are using right now to grow 10x faster for less…

A way that gets your customers to market YOUR business for you…for basically free.

What’s the way?

Growth loops.

Essentially, this is creating a ‘loop’ where buyers push your product to bring in new users.

Since loops are dependent on user output, the more users you have the faster you grow. So unlike with ads, loops give you compounding growth with little to no extra work.

Wondering how you can use this to 10x your business? Great.

Today, we’ll talk about the main 3:

• 📲 The Product-Led Loop
  

• 🎁 Incentivized Loops
  

• 🗣 The Word Of Mouth Loop

Read Time: 4 min 6 sec

📲 The Product-Led Loop

There’s one thing people get wrong about loops…

You don’t build a loop around your business, you build it into your business.

With product-led loops, your product is your marketing.

Loop Definition: Product-led loops are features built into your product that naturally push people to share your business.

Example: Loom.

Loom is the most used screen recorder for work and used this viral loop to generate over 85% of its sales. This product-led growth method generated over 14 million Loom users in 7 years.

Here’s how:

1. Loom user films a Loom and sends the it to a coworker
   

2. The coworker watches the loom and sees the value of using the platform
   

3. Coworker signs up for Loom

You can also pull this off with FOMO. Buzzfeed does it with Buzzfeed quizzes.

When someone finishes a Buzzfeed quiz like “Which Harry Potter house would you be sorted into?” they share it on social media.

Then, when others want to know their results they go to BuzzFeed and take the quiz.

Other product-led loop examples:

#1 - Spotify’s ‘Wraps’ where Spotify gives a shareable analysis of what users listened to that year.

#2 - Shopify’s “Powered by Shopify” tag in the footer of Shopify stores.

#3 - Typeform’s survey builder. People take a survey created by Typeform and then build their own survey using Typeform.

🤝 Together With The Average Joe

The “IKEA Instructions for Investing”

Assembling IKEA tables got you feelin’ like the Steph Curry of furniture?

The Average Joe will turn you into the Marie Kondo of investing. Organized, calm and ready to conquer the markets.

Their newsletters are the “IKEA instructions for investing” — short, simple and concise — filled with market trends and insights.

But you don’t read IKEA manuals on your spare time and you wouldn’t read financial publications for fun. Until now…

🎁 Incentivized Loops

I’m willing to bet most of you have seen this one and have probably participated in it. This is the ol’ you scratch my back and I’ll scratch yours.

Loop Definition: Incentivized loops happen when platforms offer incentives to share their product and invite new members. Usually, you get money or extra benefits.

Example: Dropbox.

When you sign up for Dropbox, you can invite new users for free extra storage.

Now, Dropbox has an army of users begging their friends to sign up for $0 marketing costs.

Other incentivized Loop examples:

#1 - Airbnb awards a $25 travel credit for every new Airbnb user you bring to the platform.

#2 - Tesla gives you free mile points when someone buys a Tesla through your referral link

#3 - Discover gives you $50 when you refer a friend who gets approved

🗣 The Word Of Mouth Loop

In my opinion, this is the best loop to have. If people can’t stop talking about your business, you’ve got a winner. Even if it’s not ‘good’ attention…

Loop Definition: By having features about your business that get people talking about you, you’ve created a word of mouth loop.

Example: Dick’s Last Resort. It’s a restaurant famous for its rude staff and insulting hats. Everyone goes to see how the staff will insult them!

Other word of mouth loop examples:

#1 - DoubleTree gives free cookies to guests when they check in to their hotel.

#2 - A California restaurant named Skip’s Kitchen allows customers to pick a random card from a deck before paying. If you pull a joker, your meal is free.

#3 - Starbucks offers free ‘pup cups’ to dogs in the Starbucks Drive-thru.

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