Viral Growth

Viral Growth refers to a business or product’s ability to grow rapidly and exponentially through word-of-mouth and user referrals without proportional increases in marketing spending. This self-perpetuating growth model occurs when existing customers actively promote the product or service to others, effectively turning users into marketing channels.

Viral growth is often measured using the Viral Coefficient (K-factor):

Viral Coefficient (K) = (Average Number of Invitations Sent per User) × (Conversion Rate of Each Invitation)

If the viral coefficient exceeds 1, it indicates exponential growth, as each new user brings in more than one additional user on average.

Factors that contribute to viral growth:

• Ease of product sharing.

• Strong network effects.

• Referral incentives.

• Product-led onboarding experiences.