K-Factor — Viral Coefficient
Definition: The average number of new users each existing user brings in. A K-factor above 1.0 means true viral growth; below 1.0 means referrals supplement but don't replace paid acquisition.
Example
Our K-factor is 0.8 — strong word-of-mouth that cuts CAC meaningfully, but we still need paid channels to hit growth targets.
When you'll hear it
K-Factor shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to viral coefficient — and they expect the room to already know what that means.
FAQs
What does K-Factor stand for?
K-Factor stands for Viral Coefficient.
What does K-Factor mean in business and finance?
The average number of new users each existing user brings in. A K-factor above 1.0 means true viral growth; below 1.0 means referrals supplement but don't replace paid acquisition.
Where will I hear K-Factor used at work?
K-Factor comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for viral coefficient, so people assume you already know the term.