What is a viral coefficient?
A viral coefficient, also called the K-factor, is the average number of new users each existing user brings in through invites or referrals. It equals invites sent per user multiplied by the share of invites that convert into new users.
How do you calculate the viral coefficient?
Multiply the share of users who send invites by the average invites each of them sends, then multiply by the invite conversion rate. For example, 50% of users sending 4 invites each with a 20% conversion rate gives K = 0.5 x 4 x 0.2 = 0.4.
What is a good viral coefficient for an app?
A K-factor of 1 or higher means each user replaces themselves with at least one new user, so growth compounds on its own. Most successful consumer apps run well below 1, often 0.15 to 0.5, and use referrals to amplify paid and organic acquisition rather than replace it.
What is viral cycle time and why does it matter?
Viral cycle time is how long it takes a new user to sign up, experience the product, and invite someone who then signs up. Two apps with the same K-factor grow at very different speeds if one loop takes 2 days and the other takes 30.
What does a K-factor below 1 still do for growth?
A K-factor below 1 multiplies every user you acquire by 1 / (1 - K) over time. At K = 0.4, every 100 users you acquire directly become about 167, which lowers your effective customer acquisition cost by 40%.