Lessons from Instagram, Facebook, and the Myth of Exponential Hypergrowth


Hatched by Glasp

Sep 07, 2023

4 min read


Lessons from Instagram, Facebook, and the Myth of Exponential Hypergrowth


In the fast-paced world of technology, companies like Instagram and Facebook have become giants, attracting millions of users and generating substantial revenue. However, behind their success lies valuable lessons and insights that can be applied to various aspects of life. In this article, we will explore four key lessons from software engineer Jacky Wang's experience at Instagram and Facebook, as well as debunk the myth of exponential hypergrowth.

Lesson 1: Fall in love with the problem, not your solution.

When creating successful products, it is crucial to focus on the problem you are solving for your customers. By iterating quickly, learning from testing and data, and embracing thrash as a positive byproduct of product development, you can ensure that your solution is continuously improving and meeting customer needs. This approach emphasizes the importance of remaining flexible and open to change in order to deliver the best possible product.

Lesson 2: The power of simplicity in problem-solving.

Wang highlights the principle that the simplest solution is usually the right one. This notion resonates with software engineering and problem-solving in general. By seeking simple and elegant solutions, software engineers can avoid overcomplicating their code and improve the overall efficiency and functionality of their products. This principle can be applied beyond software engineering, reminding us to simplify our approach to problem-solving in various aspects of life.

Lesson 3: The significance of soft skills and effective communication.

While technical skills are essential for software engineers, Wang emphasizes the importance of strong soft skills, including excellent communication and writing abilities. In a world where communication is shifting towards asynchronous methods, being able to effectively convey ideas and collaborate with others becomes increasingly valuable. Developing these skills can enhance not only your technical abilities but also your overall impact and influence.

Debunking the Myth of Exponential Hypergrowth:

Contrary to popular belief, the concept of exponential hypergrowth is often misunderstood. The idea that companies like Facebook and Slack experienced exponential growth throughout their existence is inaccurate when examining real-world data. It is crucial to understand that high-growth companies tend to grow quadratically, rather than exponentially.

The Elephant Curve:

The Elephant Curve helps explain the growth patterns of marketing-driven products. Starting with initial quadratic growth, a campaign gradually reaches a saturation point where growth becomes linear. This occurs due to factors such as audience saturation, declining channels, and customer cancellations. However, marketing departments continue to add new campaigns, resulting in a wavy quadratic growth pattern.

Linear Growth in Product Lines:

When considering entire product lines, growth tends to follow a logistic curve, which is similar to the Elephant Curve. Products experience slow growth initially, followed by faster expansion, reaching a natural ceiling, and potentially entering a period of decline. Rarely does a second product outpace the first, even for companies like Google, Amazon, and Facebook. Growth naturally declines with scale, regardless of the company's success.

Understanding Growth Decay:

Products cannot grow indefinitely due to finite markets and the existence of "low-hanging fruit" customers. Growth decay occurs as the market becomes saturated, leading to a decline in growth rate. The logistic curve represents this growth decay, transitioning from exponential growth to linear growth as the market approaches its carrying capacity.

Actionable Advice:

  • 1. Embrace iteration and thrash: Continuously iterate and learn from testing and data to improve your products and solutions. Embrace thrash as a positive byproduct of the development process.
  • 2. Seek simplicity in problem-solving: Strive for simple and elegant solutions to problems, avoiding unnecessary complexity.
  • 3. Develop strong soft skills: Enhance your soft skills, especially in communication and writing, to effectively collaborate and convey ideas in an asynchronous world.


By learning from the experiences of software engineers at Instagram and Facebook and understanding the reality of growth patterns in high-growth companies, we can gain valuable insights applicable to various aspects of life. Falling in love with the problem, embracing simplicity, and developing strong soft skills are key factors in creating successful products and achieving personal growth. Remember, exponential hypergrowth is not the norm, and understanding the true patterns of growth can help us make better decisions and drive meaningful progress.

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