Follow-the-Growth Expansion Rule
Invest in markets where organic use already proves local momentum
- Difficulty
- Moderate
- Time to result
- ~months to results
- Steps
- 4
- Confidence
- 94%
Rather than choosing a foreign market only from top-down attractiveness, Spiegel says Snapchat often follows demonstrated growth. The team looks for countries where people already use the product, love it, and provide feedback. It then adds people, localization, creator relationships, and ecosystem support to build on that momentum. The mechanism is especially relevant to a communication product because Snapchat becomes useful when friends adopt it together; isolated downloads are weaker evidence than active social clusters. The rule does not eliminate market analysis. It changes the sequence: observe pull first, verify that the product's core loop exists locally, and then invest to deepen it. This helps distinguish genuine adoption from an expensive market-entry hypothesis.
Origin
Extracted from The Diary of a CEO
Core principles
- 01Existing user behavior is stronger evidence than a headquarters-led market guess
- 02Local investment should amplify momentum rather than manufacture it blindly
- 03Localization includes community and content, not only translation
How to run it
- 1
Locate organic pull
Compare regions for repeated use, user clusters, retention, and unsolicited feedback.
Pro tip For network products, look for connected groups rather than isolated accounts.
Watch out Downloads alone may not show that the core product loop works.
- 2
Validate the local behavior
Confirm that people use the product for its intended value and that momentum persists without a major paid push.
- 3
Place resources behind momentum
Send team members or allocate support to the markets with the strongest evidence.
Watch out Do not assume the same intervention will work in every country.
- 4
Localize the ecosystem
Adapt the experience and work with local creators or partners so the surrounding content and support are relevant.
Pro tip Use continuing local feedback to guide the order of changes.
In the wild
Spiegel says Snapchat looks for countries where friends are already communicating through the service, then adds localization, local creators, and support around that existing behavior.
→ Expansion resources reinforce demonstrated momentum instead of starting from zero.
Common mistakes
Choosing prestige over pull
A famous large market can consume substantial resources without showing that this product has local momentum.
Treating localization as translation
Relevant creators, feedback, behaviors, and ecosystem support can matter alongside language.
Is it for you?
Best for
It is best for digital products that can observe meaningful organic adoption before opening a full local operation.
Not ideal for
It is not ideal where regulation, enterprise sales, or physical distribution requires investment before any usage can begin.
From the transcript
“What we've done with Snapchat is actually follow the growth.”
From the episode
Snapchat CEO: Exact Formula Used To Build A $130 Billion Company! I Said No To $3 Billion From Mark Zuckerberg! It’s Time To Quit Your Job When You Feel This!