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Examples of Viral Loop Business Models

Exponential Growth

Derived from…
Adam L Penenberg, Viral Loop

Tupperware

Tupperware is best known for its plastic homewares and it’s direct selling party plans. The sales consultant enrols a host to offer a party and invite guests to attend. The host earns commission on what is sold and the guests get to buy some household goodies. Then, one of the guests hosts the next party inviting a different group of people and the word spreads.
Action : Who can you ask to hold an event and invite their friends, colleagues and customers to attend?

Ponzi Schemes

Whilst Ponzi schemes are illegal, they’re a great example of word of mouth referrals. Here’s how they work… A leader starts with a small group  of investors guaranteeing very high returns. The early investors receive an initial payment at that high return. Most re-invest their funds and are so excited about their gains they tell their friends. As the fund grows the payments stop because the founder is illegally pocketing all the money.
Action : What exciting result can you produce and share that will get people talking about you? What results have your clients produced? Testimonials are potent referral devices.

Hot Mail

The key to Hotmail’s success was the signature note that read: Get Your Free Mail at Hotmail. It cost the company nothing to do this and every time an email was sent via Hotmail their service was promoted.
Action : What’s your email signature say? How could you use it to spread your word? What message could you embed in your product/service?

YouTube

YouTube grew virally because they allowed users to embed your video or someone else’s into your website or blog.
Action : How can you share your content? How will you help others to pass it on for you? At Book Rapper we package our issues as pdfs so you can easily pass them on.

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