Virallop.Com: The viral cycle is a mechanism that drives a constant context for continued evolution. This way, you inspire your existing customers to tell others about your brand, and in turn, you encourage those new customers to reveal even more people about you. It creates a lifelong cycle that can potentially lead to rapid viral evolution.

All referral programs aim to create a viral loop, often resulting in equal profit sharing when done correctly.

How do Viral Loops work?

Here are the steps involved in making a viral loop:

  • You get a new customer. In the circle shown below, this is the “input” or “purchase” step.
  • You advertise a referral program to customers, attracting them to share your product with friends. You give the customer a valuable incentive to share it with the person who eventually becomes the customer. The “ready to share” stage is where the customer is drawn into the referral list.
  • The customer thinks the ad is essential and refers you to his friends. It is known as the “sharing” phase.
  • Friends see and trust your client’s message, which is the “them” phase. They become your new customers through the “install” stage.
  • These new customers are also taking advantage of the referral program; now is their chance to enter the “ready to share” stage. And the cycle continues.

Benefits of Viral Loops

Benefits of Viral Loops

To better appreciate how viral loops work, let’s examine their usefulness.

Cost Effective: When your customers share your brand with others, that is free advertising. When done correctly, the effect is almost like magic. You get the point: one user becomes two, then four, then eight without spending a single penny, apart from your initial investment.

Trustworthiness: In a survey conducted by Nielsen, 92% of people trust recommendations from others over direct messages from businesses. Viral Loops is focused on improving this process to make sharing as easy and accessible as possible. They are, essentially, converting new customers into loyal sales agents.

Achieve rapid growth: That meaningful (and profitable) relationships are built on trust is even more true now that business trust is at an all-time low.

With Viral Loops, you get a different advantage because real people support your products and services. When you combine this trust with a great product and a solid transfer system, the accelerating viral cycle can create a snowball effect that leads to exponential growth.

Want to see what exponential development looks like in a decade? Here is a visual representation of Facebook’s monthly active users from 2004 to 2020.

Types of Viral Loops

To create a viral loop, you first need to know the correct type of viral Loop best suited for your product/company.

Types of Viral Loops

1. Basic Viral Loop

Dropbox is a classic and simple example of this type of Loop, where you can receive free storage space in exchange for successful tokens. Based on the viral essence, existing users bring in new users through a referral program in exchange for specific incentives and benefits. That new user is then given the same cycle to follow.

2. Value-Driven Viral Loop

This infectious Loop is a win-win situation for both the mover and the host. There is some advantage given to both parties here.

The probability of the recipient accepting the invitation increases exponentially while the referrer is incentivized to send out more and more invitations to those who need it.

3. Storage-Driven Virus Loop

Through this viral Loop, customers save money with coupons or promo codes for referral programs.

4. Donation-Powered Viral Loop

As the name suggests, the Loop is meant to give back something charitable for the benefit of the community in exchange for tokens. For example, online pharmacy PillPack by Amazon donates a certain amount to charity in exchange for every successful referral.

How to Find the Right Viral Loop for Your Campaign?

How to Find the Right Viral Loop for Your Campaign_

Can’t choose which viral Loop to use for your product campaign? To reach an informed conclusion, you must take stock of the many elements that go into the viral Loop to make it successful. Also, asking the right questions will help.

What rewards are most likely to motivate your users to spread the word? To launch your viral thing, make your existing users an offer they can’t resist. Whatever that reward is, make sure it is unique and special and provides real value.

What incentives will help you acquire high-quality users? Make sure you offer incentives that will specifically attract your ideal users. Remember, not all users are formed equal. If you choose rewards that demand to everybody, you’ll get low-level operators who will “muddy the waters” of your referral advertising campaign. Meanwhile, highly qualified users will not only spread the word about your product but are also more likely to be repeat users.

How much can you spend on positional ads without compromising profitability? It’s okay to be generous with your ads, but spending $80 on advertising for a product you’re selling for $50 won’t bode well for your results. It would be best to strike the right balance between encouraging users to refer and remaining profitable.


Now that you know the basic principles of a viral loop, it’s time to create a loop for your business and add tokens. Choose the type of your viral Loop, and know the metrics you’ll use to measure its success. If you want your viral Loop to succeed, don’t just let it generate growth on its own. A viral loop that drives sustainable growth should empower your users to take ownership of their experience with your product.

Also Read: All You Need To Know