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Viral Coefficient

The viral coefficient (K) measures how many new users each existing user brings in. Formula: K = (Invites sent per user) × (Conversion rate of invites). If K > 1, your product grows exponentially without any paid acquisition. If K is 0.3, each user brings in 0.3 additional users — still helpful but not viral. Most B2B products have K < 0.5; K > 1 is the exceptional case (Slack early days, Zoom during COVID).

Real-World Example

For example, if on average each user invites 3 people and 30% of those accept, your K = 0.9 — close to viral but not quite there; improve the invite flow or incentivize invitations to push it past 1.

At Cactus

We audit viral loops for PLG clients — identifying where referral mechanics are breaking down and optimizing them to maximize organic growth.

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