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Understanding the key variables in Viral Marketing

Understanding the key variables in Viral Marketing
A short study of this web site reveals that a hugely important factor for success in startup companies is finding ways to acquire customers at a low cost. In the Business Models section, we looked at the perfect business model: Viral customer acquisition with good monetization. However viral growth turns out to be an elusive goal, and only a very small number of companies actually achieve true viral growth. In 2005, I invested in a company called Tabblo (acquired by HP in 2007), and had the good fortune to work with an outstanding entrepreneur, Antonio Rodriguez. Tabblo did manage to achieve good viral growth, but around the same time YouTube was launched and managed to achieve explosive viral growth. In the process of looking at these two companies, we learnt several important things about virality. To give you a preview of this post, what you will learn is that there are two key parameters that drive how viral growth happens, the Viral Coefficient, and the Viral Cycle Time.

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Never Take Your Eyes Off This Hacker Metric If you’re like me, you’ve had enough of the Facebook IPO story. For tech entrepreneurs struggling to build stuff, the cacophony of recent press is just more noise. That’s why when my friend Andrew Chen posted an insightful analysis of Facebook user data, I was happy to get back to learning from what the company did right instead of debating what its bankers did wrong. Chen calculated Facebook’s historical ratio of daily active users (DAU) to monthly active users (MAU) and the stats are startling. Since March 2009, when the earliest data is available, approximately 50% of Facebook users logged in daily. As other technology companies struggle to maintain DAU to MAU ratios of 5% or less, Facebook’s numbers appear stratospherically high in comparison.

Keep Your Startup from Failing with this Guide "It's fine to celebrate success but it is more important to heed the lessons of failure." - Bill Gates Failure is a large part of starting a business. In fact, about 90% of all startups fail. How To Design for Viral Growth [Infographic] Viral growth is the holy grail for Web-based companies. Entrepreneurs spend late nights thinking of tactics like funny videos, PR stunts, Facebook quizzes and other mechanics that can make their product “go viral.” Viral growth is alluring because it 1) can generate a ton of users quickly, 2) the follow-on viral-acquired users are typically free, and 3) it generates press and buzz which in turn fuel the viral loop. Free users and lots of buzz?

Let's just add in a little virality It happens all the time. I’m meeting with an entrepreneur, who is telling me about a really innovative product idea for a consumer website. And I’m liking it. We’re going back and forth on product ideas. And before I know it, we’re approaching the end of our meeting. I then ask them, “So, how are you going to acquire customers.” Vanity Metrics vs. Actionable Metrics – Guest Post by Eric Ries Vanity metrics: good for feeling awesome, bad for action. (photo source: UK Guardian) This is a guest post by serial entrepreneur Eric Ries. He was most recently co-founder and CTO of IMVU, which has more than 20 million registered users and generates $1,000,000+ in revenue per month. Eric is also a venture advisor to Kleiner Perkins.

Misused mobile UX patterns Misused mobile UX patterns If you are an experienced designer, you probably agree that being inspired by others is not stealing in UI design. It’s best practice research. The Ultimate Guide to Customer Acquisition We all need to acquire new customers to make our products and businesses work. Whether there are a few users paying big bucks or thousands visiting your platform for free, how you get and retain customers is what is important. But ask yourself: are you really ready for more customers? Is your team set up to handle an influx of users? What’s your promotion strategy – inbound marketing or traditional PR? Facebook viral marketing: When and why do apps “jump the shark?” Excel spreadsheet download For those of you who are interested in the gory details, please download the following spreadsheet here: Viral and Retention Excel Model (Click to download) Math warning! This blog post will be a little more technical than usual, so I apologize to those of you who are bored by this.

Don’t Forget Your Logged Out Users I find myself saying this quite often these days to entrepreneurs and their product teams. It's something that I've noticed working with leading social platforms like Etsy, Twitter, Tumblr, and others. Services such as these have a large number of their users accessing the service regularly on a logged out basis. I can visit my friend Daryn's tumblog without logging into Tumblr and often do. Reason #1 Why Your Consumer Startup will Succeed This post is the first in a series of ten posts about the 10 key reasons your consumer startup will succeed. I speak with hundreds of aspiring consumer entrepreneurs and review thousands of executive summaries and pitches each year. From all this activity, certain patterns emerge that remain consistent with successful consumer startups. In the following 10 blog posts, I will list the top 10 reasons consumer startups succeed.

How to Acquire Users - Growth Insights - Quora Hello! Before you read this signup for new startup Spot - Driveway Sharing. You've built a product, now how do you get people to use it and find a sustainable source of customers? You have to experiment to see what works best for your product.