K-Factor
What is K-Factor?
K-Factor measures the viral growth potential of an app, game, or website. The K-Factor represents the number of new users generated by each existing user through word-of-mouth or referrals. A K-Factor greater than 1 indicates the user base is growing rapidly because each user brings in more than one additional user.
How To Calculate K-Factor?
If every user of an app refers 2 friends, and 50% of those referred friends become active users, the K-Factor can be calculated as follows:
K-Factor = Number of Invites per User x Conversion Rate
K-Factor = 2 * 0.5 = 1.0
In this example, a K-Factor of 1.0 means the app’s user base is growing rapidly.