System A
Invite loop
- Your product requires another person to complete the job
- You need net-new users more than ARPU
Invite loop vs usage expansion
Invite loops grow the user base through collaboration. Usage expansion grows revenue and depth inside accounts.
System B
Usage expansion
- You already have activated users hitting limits
- Expansion revenue is cleaner than cold acquisition
Dimension diffs
- Primary outcome
New activated users
Deeper spend / seats in existing accounts
- Trigger
Multiplayer moment
Limit or workflow wall after value
- Solo-founder fit
High if product is collaborative
High if monetization is clear
Verdict
Use invite loops to grow the graph; use usage expansion to fund the business. Many strong products sequence invites first, expansion second.