Eighty-one percent of customers research pricing and visit at least three websites before purchasing, according to Adweek. This statistic reveals modern buyers are skeptical, knowledgeable, and in control, shifting the focus from linear sales to a continuous, customer-driven cycle. The flywheel model offers a compelling answer for building a self-powering growth engine.

For decades, the sales funnel dominated growth, treating customers as an output. This approach fails in today's market, where trust and word-of-mouth are paramount. The flywheel model offers a more durable, sustainable framework, building momentum by placing customers at the business's center, using their success and satisfaction to fuel growth. Apply this concept to your startup.

What Is the Flywheel Model and How Does It Work?

The flywheel model is a business framework that explains the momentum you gain when you align your entire organization around delivering a remarkable customer experience. Originally a mechanical device invented by James Watt to store rotational energy, the business analogy is powerful. Think of a heavy, spinning wheel. The first few pushes are difficult and require significant effort. But as it gains momentum, each subsequent push requires less energy to increase its speed, and it continues to spin on its own for a time. In business, that energy comes from delighted customers.

The concept was popularized in a business context by Jim Collins in his book Good to Great, where he introduced The Flywheel Effect. The idea is that good-to-great transformations don't happen in one fell swoop. They happen through a process of relentlessly pushing a giant, heavy flywheel, turn by turn, building momentum until a point of breakthrough. HubSpot later adapted this concept into a comprehensive model to replace the traditional sales funnel. According to HubSpot, the momentum of your company’s flywheel is determined by three key factors:

  • Speed: How fast you spin the flywheel. You increase speed by applying force to the areas that have the biggest impact, such as your customer service team or investing in a frictionless customer onboarding experience. These are your growth levers.
  • Friction: The forces that slow your flywheel down. Friction can be anything from poor internal communication and team silos to a confusing pricing structure or slow customer support. Identifying and reducing friction is crucial for maintaining momentum.
  • Size: How big your flywheel is. This relates to the size and weight of your customer base. The more happy, successful customers you have, the more energy is stored in your flywheel, making it a more powerful and stable growth engine.