If you have a viral coefficient of less than 1, you’re screwed—so the conventional wisdom goes. Your viral coefficient is the rate at which customers refer new customers. With viral coefficient k, each new set of customers invites fewer new customers. That continues until your growth totally flattens and your company goes completely stagnant.
For instance, with k=0.8, your initial set of 1,000 new customers invites 800, who in turn invites 640 customers. By day 20, only 14 new customers....