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With a high viral coefficient, it'd make sense for them to pay for Promoted Posts so more of their fans see each of their Collections posts.
Meanwhile, it was spending a boatload on ads because a high viral coefficient meant that when it bought one new user, it scored several of their friends for free.
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That's a rather high bar, and one that limited the "viral coefficient", as Bass put it, needed to build online word of mouth.
"We were looking at the viral coefficient of the ad, so suddenly your costs went way down".
Viral coefficient = V in the chart below. .
These metrics can be anything from a sign up conversion rate to a viral coefficient.
He says King.com's K-factor or viral coefficient is roughly 0.8.
Viral coefficient of 1.5, doubling every 14 days.. Obituaries cost $1,300 to put in the chronicle.
Then product/market fit means something very specific: that the viral coefficient will be greater than one.
And it's got plenty of money to buy users if it can raise its viral coefficient.
As David Skok points out on his blog, "The most important factor to increasing growth is not the Viral Coefficient, but the Viral Cycle Time".
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