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How to model virality & cohorts in a Financial Plan

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A few months ago I spent a considerable amount of time trying to find a good template for virality and WOM. The only good ones I could find were from @andrewchen and @rahulvohra, but both so old that the links were broken. So I wrote down one myself! First things first. What is virality? A trivial definition can go along the lines of "the more people use the product, the much more people will do the same". In a more rigorous way, virality consists of a super-linear growth of active users, stacked against a linear (or even sub-linear) growth of marketing spending: ![](/images/viral-growth-model/viral_growth_model.png] A viral growth model: users growing exponentially, marketing spending linearly There are two main drivers that we must take into account when modelling a viral growth model: Virality starts when someone invites someone else to use a product. Formally, and very dumbly, we can then define virality in this way: That is to say: every single new user will bring a new user with

How to model virality & cohorts in a Financial Plan January 2020 It's not easy to model virality when planning and projecting startup outcomes. A few months ago I spent a considerable amount of time trying to find a good template for virality and WOM. The only good ones I could find were from @andrewchen and @rahulvohra , but both so old that the links were broken. So I wrote down one myself! What is virality? First things first. What is virality? A trivial definition can go along the lines of " the more people use the product, the much more people will do the same ". In a more rigorous way, v

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