I just finished reading an article about startup metrics. Original Article

Customer Acquisition Cost (CAC)



Life Time Value (LTV)

Product Metabolism

Viral Coefficient

Inputs for calculating viral coefficient: * initial set of customers. * number of invites sent to each new customer. * percentage of invites that convert.

The conversion rate over several cycles is your viral coefficient. A positive coefficient means: * you are giving your customers a positive user experience. * you have found a good product/market fit. * you have a lost cost of acquisition. * you will probably have high profitability.

A way to improve is build incentives into your products.


Are you making money?


This is a measure of the conversion rate from when a visitor becomes an active user. This is signalled by a sign up.


To calculate your referal rate, you need to figure out the percentage of users who come from existing customers.

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