Introduction

The fastest startups today aren’t fueled by ads but by users who spread the product themselves. Here’s how they do it.

What’s the problem it solves?

Most founders think growth requires ad budgets, but ads are costly and fade quickly. The article shows how user actions can become free, lasting marketing loops - helping startups scale faster and cheaper while also revealing how to check if their product truly has traction.

Quick Summary

Some of the world’s biggest products - Notion, Canva, Duolingo, Figma - grew because users created content that attracted others. This approach is called user-generated distribution (UGD). When a user builds a template, shares a design, or invites a teammate, it doubles as marketing. The cycle repeats: users create → others see → new users join → they create more. The article breaks down how to design these loops: seed content, reward quality contributions, build easy sharing features, and track whether shares lead to new users.

But UGD only works if the product is good. To check this, Sequoia’s Arc PMF “Terrifying Questions” Framework helps founders ask: why does this company deserve to exist, do people care, does it change behaviour, and will people pay? These questions keep founders honest about whether their product is solving a real need.

Finally, the article highlights non-obvious signs of early traction that don’t show up in dashboards: strangers responding to cold outreach, complaints that signal users care, feature requests piling up, or competitors building the same thing. Even your own improved mood as a founder can be a signal. These subtle cues often arrive before revenue or churn data and can guide whether to push harder or pivot.

Key Takeaways

• UGD turns every user action into free marketing.
• Examples: Notion templates, Canva designs, Duolingo streaks, Figma invites.
• To build loops: seed starter content, reward creators, make sharing effortless, and curate quality.
• UGD fails if the product isn’t valuable - PMF is still the foundation.
• Sequoia’s 4 PMF questions: existence, customer care, behaviour change, willingness to pay.
• Traction shows up early in hidden ways: complaints, cold outreach success, feature requests, industry chatter, or even founder morale.

What to do

• Design your product so what users create or do is naturally shareable.
• Seed your loop with high-quality starter content before expecting community growth.
• Reward contributors with recognition or revenue, not just vanity points.
• Use Sequoia’s 4 PMF questions to pressure-test your startup’s foundation.
• Track hidden traction signals like cold outreach response, rising feature requests, or seeing your product “in the wild.”
• Don’t force virality - only build loops if sharing makes sense for your product.
• Keep listening: complaints and requests are better than silence.

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