Loom's Billion Dollar Distribution Strategies

One is PLG and the other three are...

Read Time: 7 minutes 20 seconds

A couple of days back, we launched GrowthRoles on Product Hunt.

One of the not-so-mandatory requirements was to upload a short video walking visitors through what my product is about.

Right under the main heading, there was LOOM within (). Not others, why?

I couldn't stop but wonder how best this should have been to get exposure on a 510k+ monthly organic traffic site... for FREE.

But Loom didn’t go viral because it was an easy tool.

It went viral because they nailed distribution.

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The Big Idea:

The Smart Bet Loom Made Early On

When Loom launched, there were already other screen recorders.

You had QuickTime. You had Zoom. You even had tools like Camtasia.

But none of them were instant.

You had to record, download, upload, and then share.

Loom cut all that out.

  • You could record straight from your browser.

  • You didn’t need to install a complete app.

  • And you could share the video with just one link.

Their Chrome extension made it feel like Loom was just part of the internet.

No setup. No delay. Just click → record → send.

But that’s not all. They also pushed an unexplored idea that you don’t need to waste time in meetings. You can record a quick Loom.

That one belief, send a Loom instead of a meeting, changed how people worked, especially in startups, where time is tight and speed matters.

Soon, it spread like wildfire.

But how did Loom pull all this?

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Behind the Magic:

How Did Loom Become So Well-Known?

Alright! So now we know what Loom did.

Let’s look at how they pulled it off step-by-step.

1. They Used the Chrome Extension Like a Front Door

Most startups build a product first. Later, they think about how to get people to use it. But Loom started with a Chrome extension, not a big, heavy app.

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That's because a Chrome extension is:

  • Easy to install

  • Easy to understand

  • Easy to share

People didn’t have to download anything that took much effort.

They do not have to create an account up front. And the whole process, from installing it to recording and shipping the video, was smooth.

Just one button in the browser that said: Record with Loom.

That tiny button became their biggest growth lever.

And every time someone used it and shared a video?

Their coworkers saw the Loom logo on the player and wanted to try it.

That’s how Loom spread - video by video.

2. They Sold a New Behavior, Not Just a Feature

Loom didn’t win because it had fancy buttons.

It won because it sold a story people wanted to believe.

If Loom positioned like it helped people record their screens, it would have been challenging for the team to differentiate.

Instead, they were like - Don’t waste time on meetings. Just send a Loom.

They weren’t just solving a tech problem. They were solving a work culture problem - one that annoyed people every single day.

That message hit hard for startups, remote teams, and fast-paced builders. These people hate wasting time. They want to move fast and explain things quickly.

By positioning Loom as a better way to work, not just a better tool, it became something users felt good about sharing.

3. They Made Onboarding So Easy, It Felt Like a Game

Most SaaS onboarding flows are slow, boring, or overwhelming.

Loom didn’t do any of that. Their onboarding was simple.

Click the icon. Record. Stop. Share the link.

You will have it saved in the extensions section on your Chrome page. You just have to click on Loom in the extension section and you are good to go.

That’s it. You didn’t need a tour and didn’t get asked 10 setup questions.

There wasn’t even a sign-up wall up front in the early days.

Here’s how we start looming today:

What made it stick was that you got instant results. The person on the other end of the video said, Thanks, that was super clear! Or This saved me so much time.

That kind of feedback gave users a quick win. Those small moments are what build long-term habits. And habits are what drive product-led growth.

Good onboarding isn’t about more screens.

It’s about delivering value with fewer steps.

4. They Let the Product Market Itself

Loom’s well-planned growth move might have been the simplest.

Every video had Loom’s branding on the player.

So when one person used Loom to send a video, everyone who watched that video saw the logo, the design, and the product name.

It was smooth, helpful, and didn’t feel like an ad.

That meant every Loom user was bringing in new users without even trying. This kind of built-in distribution is the most underrated growth tools in the early stage.

Loom used the product to spread the word - no ads or marketing teams.

Loom didn’t just grow fast because they got lucky.

They engineered their growth by making:

  • Setup friction-free (Chrome extension)

  • Their message is clear and emotional (no more meetings!)

  • Onboarding is super rewarding (instant results + praise)

  • Sharing a built-in feature (product as the ad)

The tools you build might be different. But the playbook works anywhere.

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Where It Fits:

Ready-to-Use Marketing Strategy

You don’t need a massive team to grow like Loom. You just need to design a product that spreads as it’s used and build marketing that sells a mission, not a feature list.

Build to Spread Marketing Cycle

Phase 1:
Design for Instant Use (No Setup, No Fluff)

Objective: Build a “one-click wow” experience.

How to do it:

  • Launch with a simple format: Chrome extension, Notion template, mobile shortcut, Slack bot, something people can use instantly.

  • Avoid logins or forceful onboarding in early versions.

  • Ensure users can get a win in under 60 seconds (like sending a Loom link, sharing a template, or previewing a design).

Use tools like Tally.so for frictionless forms, Typedream for fast landing pages, and SaaSFrame to see onboarding flows that convert.

Phase 2:
Make the Product Share Itself

Objective: Turn every use into a mini marketing campaign.

How to do it:

  • Add light, friendly branding wherever the product gets shared (like Loom’s video player).

  • Offer built-in templates or content that people want to share.

  • Add a smart CTA at the end of each share (e.g., “Made with [your product] – Try it in 30 secs”).

If users can’t naturally share your product, create a shareable output around it. For example, if you build a writing tool, help users export blog intros or tweet threads with your watermark.

Phase 3:
Show the “New Way” (Not the Tool)

Objective: Sell the belief system behind your product.

How to do it:

  • Start a newsletter, LinkedIn series, or blog around the pain your product solves. Loom did this by showing async-first teams.

  • Use real-world language. You could say no more useless meetings instead of improve productivity.

  • Gather examples like your users, workflow, or even TikToks showing the before/after.

You can post them on Reddit, Indie Hackers, Twitter, LinkedIn, Slack communities like Trends.vc, or small Telegram/WhatsApp groups.

Phase 4:
Loop in Team Growth Without a Sales Team

Objective: Make it so one user = more users.

How to do it:

  • Track when someone shares your product with others. Trigger soft nudges to invite teammates or record one for your client.

  • Give bonus features if more people join (Dropbox did this, Notion does this, Loom too).

  • Use referral nudges post-success, not at sign-up. Let the user fall in love first.

After they have used it 3 times, you can maybe ask something like: Looks like you are loving this. Want to loop in your cofounder or team?

Optional Booster:
Show, Don’t Sell Campaign

Once you get 50–100 users, do a weekly feature on how they are using your product:

  • Create 30-second video case studies

  • Post screenshots of user success stories

  • Let users teach others how to use it smarter

This creates FOMO and shows real proof.

Plus, it helps users feel like they are part of your journey.

Resources For You

Templates: Struggling to create high-converting DTC ads? Get 60+ proven DTC ad templates used by top brands. Plug, tweak, and launch winning ads instantly.

Hunting Marketing Jobs: Check out GrowthRoles. It's a job board just for marketers. From email marketing to social media marketing, find your dream role today.

Blog:

YT Video: 30 Years of Business Knowledge in 2hrs 26mins

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