Wondering if there's a simple formula for exponential growth? Here's a brief explanation as described by Bayram Annakov, CEO of App in the Air, in his article.

 

The formula is: 

k > (1-retention), where k is the fraction of new users attracted by existing users. 

 

The system incorporates 2 feedback loops: 

1. Reinforcing loop: more active users >> more new users >> more active users.

(New Users = Active Users * k)

2. Balancing loop: more active users >> higher churn rate

(Churned Users = Active users * (1-retention), since churn rate is reverse of retention)

 

In summary, to achieve exponential growth, you need: k > churn rate, as illustrated below:

(Please refer to the original article for more details)

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