The K-Factor: Measuring Your Product's Viral Growth
The Viral Coefficient (K-factor) measures how many new users each existing user generates. It's key for products with referrals or sharing. The common mistake is chasing K > 1; even K=0.5 is valuable, as it effectively halves your acquisition cost.
The Viral Coefficient (K-factor) is your product's R0 number from epidemiology: it measures the average number of new users each existing user brings in. It's used to quantify growth in products with referrals or sharing features. The biggest mistake is assuming you need K > 1 for virality to be useful; a K of 0.5 means half your new users are free, effectively halving your blended customer acquisition cost.
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