By creating a virtuous cycle.
Robinhood’s value proposition was simple – ‘stop paying up to $10 for every trade’.
Investors who paid anywhere between 7-12 bucks for every buy or sell found this product super attractive and signed up for early access.
What the company did next was, show these people their position in the waitlist. This was new.
Then they made them an offer – If you refer other people to sign up, we’ll move you up in the list.
And people did – not only because of savings on commission but also due to natural psychological triggers. Prateek describes this really well in his chart.
This accelerated the social referral cycle and led the company to have a million sign-ups even before the product was released to the public.