Every platform business—whether it’s Uber, Airbnb, or LinkedIn—faces the same challenge at the beginning: how to acquire users and grow fast enough to become dominant in the market. Unlike traditional businesses that rely on direct sales or advertising, platforms depend on network effects to attract and retain users. But getting to the point where the platform grows itself isn’t automatic—it requires a clear strategy.
User acquisition for platforms isn’t just about running ads and hoping people sign up. It’s about creating an ecosystem where users bring in more users, making the platform more valuable over time. Think about how Facebook grew. In the beginning, it was just for Harvard students. But as more people joined, the value of the network increased, making it attractive to students at other universities, then the general public. WhatsApp followed a similar path—people invited their contacts because they needed others to make the app useful. This is what makes platform growth different from regular business growth: users are not just customers, they’re also contributors to its success.
The first challenge for any platform is solving the cold start problem—getting enough users to join when there’s little to no activity. A marketplace with no buyers won’t attract sellers, and a ride-hailing app without drivers is useless. One of the most effective ways to overcome this is by seeding one side of the market. When Airbnb started, they manually reached out to property owners and even helped them take professional photos of their listings. This ensured that when users came to search for a place to stay, there was already an attractive selection available. Uber, on the other hand, focused on driver acquisition first, knowing that without available drivers, riders wouldn’t use the app.
Another way platforms drive growth is through incentives and referrals. When PayPal launched, they offered users $10 to sign up and another $10 for referring a friend. This may seem costly at first, but it helped them acquire millions of users quickly, many of whom became long-term customers. Uber, Airbnb, and Dropbox have all used referral programs where users get discounts or bonuses for inviting others. These strategies work particularly well for platforms because users are naturally motivated to invite their friends and contacts to improve their own experience.
Beyond incentives, content and engagement strategies play a huge role in platform growth. TikTok is a great example—its algorithm is designed to show users engaging videos immediately, even if they don’t follow anyone yet. This keeps people on the platform long enough to start interacting, which increases the chances of them creating content themselves. Platforms like LinkedIn and Twitter use trending topics and notifications to keep users engaged and returning to the platform regularly. The key takeaway? Growth isn’t just about acquiring users—it’s about keeping them engaged and getting them to contribute.
Once a platform gains traction, growth loops become essential. Unlike traditional businesses that constantly need to acquire new customers, platforms can grow organically when they create systems where existing users bring in new ones. For example, Airbnb guests often become hosts, and YouTube viewers eventually become content creators. This type of built-in growth means the platform doesn’t have to rely as heavily on paid marketing to scale.
Of course, scaling a platform also comes with challenges. As more users join, maintaining quality and trust becomes harder. Marketplaces must prevent fraud and bad experiences—Amazon and Airbnb do this with user reviews and verification systems. Social platforms have to manage spam and misinformation, which is why companies like Facebook invest heavily in content moderation and AI-driven oversight. Balancing growth with user experience is crucial—if the platform becomes too cluttered, untrustworthy, or difficult to use, users will leave.
For platform founders, the key to successful user acquisition isn’t just about getting users—it’s about creating a system where users bring in more users, engagement drives retention, and value increases as the platform grows. Whether it’s through network effects, smart incentives, viral content, or seamless onboarding, the platforms that scale the fastest are the ones that build self-sustaining growth loops.
At CEEDLAB, we specialize in helping founders and businesses design platforms that don’t just attract users, but retain and scale them efficiently. Whether you’re launching a marketplace, fintech platform, or AI-driven business, understanding growth strategy is essential for long-term success.