MMI6Chris
Web/Media 2.0. The future is "User generated content" We are all the new media moguls!
Monday, 21 March 2011
Tuesday, 8 March 2011
A Treatment for a viral film
Tuesday, 1 March 2011
Some ideas?
Just a few ideas.
Monday, 28 February 2011
Friday, 25 February 2011
Shared characteristics of viral companies
So launching a successful viral loop company is easy; far from it. Creating a deliciously spreadable product is merely the first step. Then comes the hard work of ramping up a business, and that's where some real challenges await, as Hong and Young learned with Hot or Not.
Viral loop companies succeed for many of the same reasons, while unsuccessful ones seem to fail in different ways. For every eBay and Facebook there are heaps of social start-up failures you've never heard of. In addition to Friendster, which simply couldn't scale, there is Tribe, for example, an online community that never caught on; Plaxo, creator of a "smart address book" that didn't serve an important enough need; and Flixter, which lets users share movie reviews but has had trouble attracting repeat traffic.
Successful viral expansion loop businesses share the following characteristics:
• Web-based: They are far better suited to the frictionless world of the Internet.
• Free: Users consume the product at no charge; after aggregating a mass audience, it may be possible to overlay various revenue streams (offer premium services, for example).
• Organizational technology: They don't create content—their users do. They simply organize it. But facilitating can lead to a mass audience. Just ask Google.
• Simple concept: Easy and intuitive to use.
• Built-in virality: Users spread the product purely out of their own self- interest and, in the process, offer a powerful word-of-mouth endorsement to each subsequent user. (And word of mouth is widely viewed as the best form of advertising.) This means that viral loop products have within themselves the seeds to grow on their own.
• Extremely fast adoption: Within a month of Facebook's launch, half of Harvard's student body had joined. Within thirteen months, 12 million people had downloaded Skype. Hotmail had 30 million users within thirty months. Yet none of them required a dime for marketing or a sales force.
• Exponential growth: Because each user attracts more users, there is a tandem growth model. This is in sharp contrast to a "normal" business, which more typically grows linearly (and far more slowly), at a rate usually corresponding to its marketing spend.
• Virality index: For the user base to grow exponentially, virality must equal or exceed 1.0. In the aggregate, one user becomes two, turns into four, eight, and so on. Anything less than 1 and virality cannot be self-sustaining.
• Predictable growth rates: If a product is properly designed with viral hooks, it spreads at a constant rate, assuming there are sufficient numbers of people, and can be accurately forecast, in the same way epidemiologists can predict with some certainty how quickly a virus will spread through a city.
• Network effects: The more who join, the more who have an incentive to join. A telephone, for example, becomes continually more useful to those who already have one as more people are added to the network.
• Stackability: A viral network can be laid over the top of another, each fostering the other's growth (PayPal and eBay; YouTube and MySpace).
• Point of non-displacement: A tipping point, when a company attracts so many users it continues to grow; it becomes nearly impossible for a competitor to take it down.
• Ultimate saturation: After a network has spread far and wide, it can reach a point of maturity when growth slows. This happened to both MySpace and Facebook, both of which saw their growth rates slow from 3% a month to about 1%, and in MySpace's case even decline slightly. Nevertheless, they had already amassed substantial user bases, with a full 20% of users considered "addicts" who made up almost 70% of visits.
The result is a business that spreads rapidly, scales quickly, and has the potential to create staggering wealth in a relatively short amount of time.
Penenberg, A. L. (2010) Viral Loop: The Power of Pass-it-on. 1st ed. London, UK: Hodder & Stroughton LTD.
© Adam. L. Penenberg 2009.
