A note from Daniel

Let's say you've built a new productivity tool for sharing notes, and after it launches, 1,000 users download the new app. A percentage of these users invite their colleagues and friends, and over the next month, 500 users download and sign up—what happens next? Well, those 500 users then invite their friends, and get 250 to sign up, who create another 125 sign-ups, and so on. Pay attention to the ratios between each set of users-1000 to 500 to 250. This ratio is often called the viral factor, and in this case can be calculated at 0.5, because each cohort of users generates 0.5 of the next cohort. In this example, things are looking good—starting with 1,000 users with a viral factor of 0.5 leads to a total of 2,000 users by the end of the amplification—meaning an amplification rate of 2x.

Daniel Cold Start Problem, page 215 · September 22, 2023 Save to shelf
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