The viral marketing business model was first described by Tim Draper and popularized in 1997 to describe Hotmail’s practice of adding advertising to the outgoing mail of their users. Viral marketing had been around for ages. In so many words, it is word-of-mouth advertising.
It relies on the average person’s tendency to “tell their friends”. The terminology, or what we refer to this as, is new. Surveys tell us that the average person has at least six close friends that they speak to fairly often. If they have a great experience with a product they will on average, tell six people.
Surveys also tell us that when an internet user finds something valuable, informative, funny, interesting or free on the internet, they will share that with 12 other people online. The internet is the platform for the most successful viral marketing business models out there.
We have also been told by the pros that in order to sell something, you need to give something away. I recently read an e-book about dieting and it was completely free. It made perfect sense. It was written by the marketing department of a supplement manufacturer. He suggested that you share the book with everyone. His goal, of course, was to sell supplements.
He may have sold the book. It contained just as much information as some of the diet books out on the market, but he realized the value of giving something away, what he would get in return would be far greater. Most people have a tendency to like companies that give them something of use, especially when they do not have to pay for it.
There are numerous software programs online that offer a free version and a “platinum” version. This is another example of a viral marketing business model. When one person sees this free software program, they will tell, on average, 12 of their online buddies about it.
Social networking groups online are getting flooded with new members, reflecting how many people are choosing to spend extra time. People on MySpace and Facebook literally have hundreds of online friends and they “share” things with them on a daily basis. If you can provide something that they want to share with others, then you may have hit the target.
There are other elements of a successful viral marketing business model. But, coming up with something free that people can share with others is the most important element.
