Adam L Penenberg, Viral Loop
PROFIT : The key to multiplying your customers is to have positive feedback loops. It starts with someone liking you or your product and telling someone else. Referring one-by-one is useful, however opening up a decentralized referral system has the potential to explode and go viral.
A negative feedback loop or a vicious circle occurs when one one undesirable thing leads to another and then another.
In contrast, with a positive feedback loop or virtuous circle things get better and more desirable with each iteration. A classic example is compound interest. If you leave your money in an account you’ll get paid some interest. Leave the interest there and soon you’ll get interest on your interest.
Take a dollar and double it every day for 30 days and you’ll have over $536 million! Now that’s viral growth!
Compare that to the traditional way of seeking referrals one at a time… Effective, albeit a little slow.
The word ‘viral’ has been borrowed from epidemiology. It explains how things spread.
When it’s applied intentionally it can bring exponential results both negatively (a computer virus) and positively (Susan Boyle on YouTube).
The key to building a viral loop referral system is to design replication into your business model.
This is a shift from ‘what will happen’ to ‘how it will happen’.
Why is it that we often know exactly what to do... but still don't do…
In The Bourne Identity, Jason Bourne has no idea who he is. He has amnesia, which…
When I sat down to speak with intercultural communication expert Taruni Falconer, I expected to…
Most people think experience gives us answers, but what happens when our experience fails to…
Michael Henderson describes himself as atrocious with technology. So why has an anthropologist become surprisingly good…
During the last few years of Dad’s dementia, when Mum and I would visit him…
