How GitHub built a 40M+ user platform by creating a series of organic growth loops
The growth strategies that led to a $7.5B acquisition
In 2008, Tom Preston-Werner, Chris Wanstrath, Scott Chacon, PJ Hyett founded GitHub - a platform that democratizes coding by allowing people to write and share code. They solved a problem faced by many - how to effectively collaborate on code.
Strategy 1: Beta Loop
Before they official launched, they built a beta/pre launch growth loop. A user would onboard, be encouraged to share their code with a link, resulting in people sharing their profiles with others. People then checked out GitHub and signed up.
With each completion of the loop, the effect compounds organically. As the user base grew, the platform became more valuable and collaborative. The newest users then shared their link, bringing a new wave of people to Github The cycle repeats, with an increasing effect.
A psychological key to the loop was that the product leverages people's inner motivation to be viewed desirably. People liked to show off their code. The product was made to be shareable, but the nature of the users helped fuel the growth engine They got 6000 users PRE LAUNCH.
How this can translate for you!
Brainstorm what your users will be producing/getting out of your product
Think how you can make a public page where users can share work with others
Create a way for users to bring more people to the page in a way that adds value for all
Strategy 2: Network Effect + Marketplace
While the features + functionality drew in the first batch of users, it was the talented pool of developers and their public work that built a network effect driving tons of new users. This social aspect is GitHubs acquisitions lever
GitHubs two main drivers of growth are 1. The network effect that drives users to the platform (driven by becoming the most popular social platform for developers) 2. A growing marketplace for people seeking code for their projects (becoming a huge marketplace for code).
How this can translate for you!
Understand what motivates and drives your users the most
Focus on building out those core problem solving/value adding elements (before building other features) - leverage this to form loops.
Find your 80/20 to optimize growth
Strategy 3: Freemium
Most people were ok with sharing code with the public, however the founders started getting requests for private repositories. This is when they realized there was an alternative demand that could be used to cover costs and become a profitable business.
They made it possible for people to make code in private and share with limited groups of people, and company dev teams. They could make them viewable/public or editable if they wanted later. They offered private plans for individuals, teams, and for enterprise businesses.
This fuelled interest and participation from larger companies as a new platform to collaborate. It also sparked interest from users on the platform interested in seeing what big companies were doing. However in 2018 once they got acquired, they made all premium plans free.
An important element is that all it took was one person to bring an entire team or company. As well, other nontechnical professional were using GitHub as a way to connect with others for projects This made the product more sticky and added to the existing growth engine.
How this can translate for you!
Consider your product's current solution, are there any other preferences for how the same product can be used in different circumstances?
Listen carefully to and seek customer feedback, they can be new profitable channels in disguise
Strategy 4: Culture
The right culture and team is a growth strategy not talked about enough. They take a collaborative approach (just like their product) to create a specific environment. They hire people who align with their values by asking “feeler questions” to assess fit.
Preston Werner said "companies should exist to optimize happiness, not money. Profits follow.” They empower people to work on projects that excite them and to hold themselves accountable, leading to better and more meaningful work Happy employees = better output + growth.
Strategy 5: Product Leg Growth
Above all, GitHub solves an annoying/painful problem. None of the above strategies would work if it didn't. Their new solution removed friction from previous collaboration, making it a seamless experience and scalable solution for developers.
GitHub Today:
40M+ users
190M+ repositories
Acquired by Microsoft in 2018
Keys to Growth Success:
Built organic acquisition loops
Leveraged network effects
Listening to customer feedback
Built strong pre launch momentum
Thank you for taking the time to read this! I hope you got some value out of it :)
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