Reverse Funnel Growth

A strategy for building passionate communities and products by starting small with super-users and expanding outward, rather than trying to grow quickly with mass appeal.

Core Concept of Reverse Funnel Building

  • Start with 10 extremely passionate users who love your product/content
  • These users should be so passionate they annoy you with feedback
  • They'll tell all their friends (even if friends don't listen)
  • Expand to 100 people who care a lot (but less than the first 10)
  • Continue expanding to 1000, 10000, 100000 users
  • Build from bottom-up instead of top-down traditional funnel

Why This Approach Works

  • Creates strong foundation with highly engaged users
  • Gets best product feedback from most passionate users
  • Builds genuine community rather than artificial growth
  • More enduring than trying to appeal to everyone immediately
  • Creates strong moats through community loyalty
  • Harder to kill businesses built this way

Real World Examples

  • Rebrickable (Lego community)

    • Started small with passionate LEGO fans
    • Grew to 11M users by 2023
    • 160M annual page views
    • Built entirely around community needs
    • Users extremely loyal to platform
  • Build-A-Bear

    • 40% revenue now comes from adults
    • Created "Build-A-Bear After Dark" for adult customers
    • Found passionate niche within broader market

Key Principles

  • Don't try to grow too fast
  • Let passionate users guide product development
  • Be willing to seem "silly" or niche at first
  • Focus on authentic community building
  • Act as a steward of the community rather than dictator
  • Avoid diluting core appeal to chase faster growth
  • Find people who are passionate about specific interests but can't find others like them

Warning Signs of Wrong Approach

  • Chasing views over authenticity
  • Making "cringey" content for mass appeal
  • Talking about mainstream topics vs niche interests
  • Trying to appeal to everyone instead of core fans
  • Growing too fast and losing community feel
SP

Shaan Puri

Host of MFM

Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.

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