Product Deep Dive

Building Viral Loops: How Every Redemption Creates a New Influencer

Onlure TeamJanuary 28, 20258 min read

Why is Partiful the fastest-growing event platform despite having zero marketing budget?

Answer: Every invite creates a new inviter.

When you get invited to a Partiful event, you don't just RSVP—you're encouraged to invite your own friends. Each attendee becomes a mini-marketer, and the event grows exponentially without the organizer lifting a finger.

This is a viral loop, and it's the same mechanism powering Onlure's explosive growth.

Here's how we turn consumers into influencers with every redemption—and why that's the key to sustainable, scalable growth.

The Viral Loop Playbook

A viral loop is a self-reinforcing growth cycle where: 1. User A discovers your product 2. User A uses your product and gets value 3. User A shares your product, bringing in User B 4. User B repeats the cycle, bringing in User C 5. The loop continues without requiring paid ads

The math is simple: ``` Viral Coefficient (K) = (Invites Sent per User) × (Conversion Rate) ```

If K > 1, you have exponential growth. If K < 1, growth stalls.

Examples of viral loops:

  • Dropbox: "Refer a friend, both get 500MB free storage"
  • Uber: "Give $10, get $10" referral codes
  • Partiful: "Invite your friends to this party" → new inviters created
  • Onlure: "Redeem a Drop, earn coins, share your own QR, earn more coins"
  • How Onlure's Viral Loop Works

    Here's the magic:

    Step 1: Consumer Discovers a Drop

    A consumer (let's call them Alice) sees a Drop shared by a creator:

  • Instagram Story: "Get 50% off your first class at @YogaStudioTO!"
  • Alice clicks the link: `https://o.lure/c/{creator_share_id}`
  • She sees the Drop page: scarcity meter ("Only 12 left!"), countdown timer ("Ends in 3 days"), offer details
  • FOMO is activated.

    Step 2: Alice Redeems the Offer

    Alice visits the yoga studio, scans the QR code at checkout, and redeems the Drop.

    Result:

  • Alice gets 50% off her class
  • Alice earns +5 coins in her Onlure wallet
  • The creator who shared it earns +5 coins
  • The yoga studio gets a new customer
  • Everyone wins.

    Step 3: The Share Prompt

    Immediately after redemption, Alice sees a notification:

    "You earned 5 coins! 🪙"

    "Want to earn 5 more? Share this Drop with your friends and earn 5 coins per redemption!"

    Two buttons:

  • [Share Drop] → Mints a personal trackable QR code for Alice
  • [Skip for now]
  • If Alice clicks Share, she's now an influencer. Her unique link: `https://o.lure/c/{alice_share_id}`

    The consumer-to-influencer (C→I) conversion happens at the moment of maximum satisfaction.

    Step 4: Alice Shares, Her Friends Redeem

    Alice posts the Drop to her Instagram Story:

    "OMG just tried this yoga studio and it's amazing! Here's 50% off your first class [QR code]"

    Her friend Bob scans Alice's QR code, visits the studio, and redeems.

    Result:

  • Bob gets 50% off
  • Bob earns +5 coins
  • Alice earns +5 coins (for referring Bob)
  • The original creator earns +5 coins (secondary attribution!)
  • Alice just became part of the viral chain.

    Step 5: Bob Shares, and the Loop Continues

    Bob sees the same share prompt after redemption:

    "You earned 5 coins! Share this Drop and earn 5 more per redemption!"

    Bob shares with his friend Carol. Carol redeems.

    Result:

  • Carol gets 50% off + 5 coins
  • Bob earns +5 coins (for referring Carol)
  • Alice earns +5 coins (secondary attribution: Carol is 2 levels deep!)
  • The original creator earns +5 coins
  • This is 2-level attribution, and it's how the viral loop compounds.

    The Math: Why This Works

    Let's model the viral coefficient:

    Assumptions:

  • 100 people redeem a Drop from the original creator
  • 30% of redeemers share (C→I conversion rate)
  • 20% of their shares convert (secondary redemption rate)
  • Wave 1 (Original Creator's Direct Shares):

  • 100 redemptions
  • 30 people share (30%)
  • Total new influencers: 30
  • Wave 2 (Secondary Shares):

  • 30 new influencers each share with ~10 people
  • 300 people see the Drop
  • 60 people redeem (20% conversion)
  • 18 of those share (30% of 60)
  • Total new influencers: 18
  • Wave 3 (Tertiary Shares - Capped at 2 Levels):

  • 18 new influencers share
  • 36 redemptions (20% conversion)
  • Total redemptions: 196 (100 + 60 + 36)
  • The campaign nearly doubled in size without the business lifting a finger.

    Viral Coefficient (K) = 1.96 → Exponential growth! 🚀

    Design Patterns That Make Viral Loops Work

    Not all viral loops succeed. Here's what makes Onlure's effective:

    1. Immediate Value (No Delayed Gratification)

    Bad viral loop:

  • "Invite 5 friends to unlock your discount"
  • Good viral loop (Onlure):

  • "You already got the discount! Now share to earn even more."
  • People share because they already got value, not because they're chasing it.

    2. Mutual Benefit (Not Zero-Sum)

    Bad viral loop:

  • "Steal your friend's spot in line by referring them"
  • Good viral loop (Onlure):

  • "You earn 5 coins, they earn 5 coins, the creator earns 5 coins—everyone wins"
  • No one feels exploited.

    3. Scarcity & FOMO

    Onlure Drops have:

  • Quota meters: "Only 12 redemptions left!"
  • Countdown timers: "Ends in 3 days, 14 hours"
  • Early redemption bonuses (future feature): "First 10 redeemers get 2× coins"
  • Scarcity drives urgency. Urgency drives sharing.

    4. Frictionless Sharing

    Bad viral loop:

  • "Copy this code, paste it in a text, manually send to friends"
  • Good viral loop (Onlure):

  • One tap generates a shareable QR code or story graphic
  • Pre-filled Instagram Story with Drop details
  • No typing, no copying, no friction
  • If sharing takes more than 5 seconds, people won't do it.

    5. Social Proof

    Onlure shows:

  • "23 people have redeemed this Drop in the past 24 hours"
  • "Your friend Alice shared this with you"
  • "Featured in the Toronto Top Drops this week"
  • People share what they see others sharing.

    Why Browser-First Beats App-Only

    Onlure is browser-first (with PWA support). No app download required.

    Why does this matter for viral loops?

    Friction Kills Virality

    App-only flow: 1. See a friend's shared link 2. Click the link 3. Get redirected to the App Store 4. Download a 50MB app 5. Create an account 6. Finally see the Drop 7. 80% of users dropped off by step 3

    Browser-first flow (Onlure): 1. See a friend's shared link 2. Click the link 3. See the Drop instantly (no login required) 4. Redeem at the store 5. 10% drop-off

    Lower friction = higher conversion = stronger viral loops.

    Partiful figured this out. So did Linktree. So did TikTok (web viewer).

    Apps are great for retention. Browsers are great for acquisition.

    Real-World Example: The Queen West Cafe

    A Queen West cafe launched a Drop: "Buy one coffee, get one free."

    Wave 1 (Original Creator):

  • Creator shares with 8K followers
  • 34 people redeem
  • 12 people share (35% C→I conversion)
  • Wave 2 (Consumer Shares):

  • 12 new influencers share
  • 18 people redeem from their shares
  • 6 people share
  • Wave 3 (2nd Level Shares):

  • 6 new influencers share
  • 9 people redeem
  • Loop stops (2-level attribution cap)
  • Total redemptions: 61 (34 + 18 + 9)

    Viral Coefficient: 1.79 → Growth without paid ads! 🎉

    Future Enhancements: Gamification

    We're planning to add:

    Creator Badges:

  • "Trendsetter" (first 10 people to share a new Drop)
  • "Lightning Redeemer" (redeemed within 1 hour of launch)
  • "Community Builder" (drove 50+ secondary redemptions)
  • Leaderboards:

  • City rankings: "Top creators in Toronto this week"
  • Niche rankings: "Top coffee creators"
  • Multipliers:

  • "Share within 10 minutes of redemption → earn 2× coins"
  • "First 5 redeemers get 3× coins"
  • These mechanics amplify the viral loop even further.

    How to Design Your Own Viral Loop

    If you're building a product and want viral growth, ask:

    1. Does your product create immediate value? (People won't share something they haven't benefited from yet) 2. Is there a natural sharing moment? (The best time to ask for a share is right after someone gets value) 3. Do both the sharer and sharee benefit? (Mutual benefit beats one-sided incentives) 4. Is sharing frictionless? (One tap > multi-step process) 5. Do you reward ongoing participation? (2-level attribution keeps people sharing long-term)

    If you can answer "yes" to all 5, you have the foundations of a viral loop.

    Why Viral Loops Beat Paid Ads

    Paid ads scale linearly:

  • Spend $1K → get 100 customers
  • Spend $10K → get 1,000 customers
  • Viral loops scale exponentially:

  • 100 customers → 30 share → 60 more customers → 18 share → 36 more customers
  • 196 customers from an initial 100
  • Viral loops compound. Ads don't.

    Join the Viral Loop

    Ready to turn your customers into influencers?

    Already a consumer? Start sharing and earning:

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    *Want to discuss viral growth strategies? Email us at support@onlure.ca*

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