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The K-factor is invites per user multiplied by the conversion rate of those invites. Send 3 invites that convert at 15 percent and your K is 0.45, so every user brings just under half a new user.
A K above 1 means each user brings more than one new user and growth becomes self-sustaining. Below 1, referrals slow without dying, because each cohort still seeds part of the next.
True virality, a K sustained above 1, is extraordinarily rare and usually short-lived. Most real referral programs run somewhere between 0.2 and 0.7 and that is not a failure.
A coefficient under 1 is a standing discount on every other channel, since each cohort partly seeds the next. Nudging the K you have upward beats chasing a mythical one above 1.
Multiply the average number of invites each user sends by the share of those invites that convert into active users.
Each user brings in more than one new user, so growth becomes self-sustaining. It is rare and usually does not last long.
No. A K under 1 still lowers blended acquisition cost because each cohort partly seeds the next. It just does not carry growth on its own.
Build sharing into the core product experience, cut friction from the invite flow and reward both sides of the referral.
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