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What is your Viral
Coefficient?
An introduction to virality in startups
Nikhil Samuel
What do you think of when we say,
“This startup had viral growth..”
2
Menu du jour
1. What is Viral growth?
2. Startups that went viral
3. How do we measure virality?
4. What are the variables that affect virality?
5. Example spreadsheet
6. How can one go viral?
3
What is Viral growth (marketing)?
4
5
Users
Time
Viral marketing is not a
marketing strategy.
6
Viral marketing is not
a product feature.
7
Viral marketing is a
fundamental product
design discipline.
8
Virality without
Product/Market fit
is useless.
9
10
Viral growth
when used as a marketing
strategy
1) Develop your product
2) Think through a plan on how to
make people use
3) Declare viral marketing is one of
N approaches (along with SEO,
SEM, PR, etc.)
11
Startups and virality
12
How do we measure virality?
There are two key parameters that drive how viral growth
happens, the Viral Coefficient, and the Viral Cycle Time.
Eg., 10 initial customers, send out 10 invites, 20% invites
convert to customers. How many new customers does 1
initial customer bring?
13
Viral Coefficient
14
Viral Coefficient should be > 1
for viral growth
15
The shorter the Viral Cycle Time,
The higher the growth
16
Viral Cycle Time
17
Access the spreadsheet
18
How do I go viral?
19
20
1000 new users
20% send out invites
10 invites sent per user
50% of emails are opened
5% click-throughs
20% sign up
= 10 new users sign up
Viral Factor = 10/1000 = 0,1
21
22
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What is your viral coefficient ? - an introduction to virality in startups