Viral Loops are mechanisms where each additional users brings in 1.0+ new users. This process is self-replicating, much like a virus, leading to exponential growth without the need for traditional marketing. Companies best suited to viral loops are web based, free, organizers of content (vs. producers), simple concept, built in virality that creates word of mouth, extremely fast adoption, exponential growth, have predictable growth rates, exhibit network effects, eventually hit a tipping point where they become the default and eventually saturate the market.
Full notes on Viral Loops here
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