Growth Mechanics & Product-Led Growth
The Science of Viral Loops
Product-led growth transforms users into organic acquisition channels:
- The K-Factor Threshold: $K = 1.0$ is the mathematical boundary. Below 1.0, growth decays but multiplies paid marketing. Above 1.0, user growth becomes exponential without additional marketing spend.
- Cycle Time Compounding: Halving viral cycle time (e.g. from 14 days to 7 days) doubles the speed of exponential compounding over any fixed calendar quarter.
- CAC Dilution: Even a sub-viral loop ($K = 0.60$) yields a $2.5 imes$ amplification multiplier ($1 / (1 - 0.60) = 2.5$), effectively reducing paid CAC by 60%.
- Retention Synergy: Virality without strong product retention causes high leaky-bucket churn; sustainable loops require high Day-30 retention.
Measure payback in the CAC Payback Lab.