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 Barbara Macdonald | @BarbaraEMac | Barbara@GetWillet.com
+   ?
Who is going
to succeed?
Viral loops are core.
Willet
Social
Each user more valuable an
an individual
Each user more valuable an
an individual
Viral loops are core.
Roelof Botha
“Forget about adding ‘viral’ to your marketing
 to-do list after your product is already on the
     market. You need to bake it into your
   business model from the very beginning.

   Viral isn’t something you can just make
happen. It has to be inherent in your product."
                                         paypal

                                         youtube
Not Marketing.

Not Advertising.
            Yes, marketing term, not talking about that, not a
            marketer, am an engineer



              •      branding = marketing - do
                     something cool, poeple will talk about
                     it, one -off

            action = Do something that’s REALLY easy
            to spread to other people, mechanism not
            content
Viral Loop

The steps a user goes through between
entering the site to inviting the next set of
                 new users

                                                                                    no mention of message or
                                                                                    content

                                                                                    simply an action

                                                                                    proactive


                http://andrewchenblog.com/2007/07/11/whats-your-viral-loop-understanding-the-engine-of-adoption/
Viral Loop
Viral Loop


E
Viral Loop


E                A
Viral Loop
             A   A   A

                     A
E                A   A
Viral Loop
             A   A   A

                     A
E                A   A




       S
Viral Loop
             A   A   A

                     A
E                A   A




       S
Adam Penenberg

“Simply by designing your product the right way, you
can build a billion-dollar business from scratch.

No advertising or marketing budget, no need for a
sales force, and venture capitalists will kill for the
chance to throw money at you.”



                               http://www.fastcompany.com/magazine/125/nings-infinite-ambition.html
Resistance is futile.
Theory is simple.
Engineering is hard.
B.J. Fogg’s
    Mass
Interpersonal
 Persuasion
                http://www.bjfogg.com
Persuasive
Experience
       Experience created to change attiudes + behaours

       You need to make an impact to change passive bystanders
       into active users

       People’s attention is bombarded with many things

       hinges on social influence
What Makes Content Viral?




                                                  Experience created to
                                                  change attiudes, behaours




              http://marketing.wharton.upenn.edu/documents/research/virality.pdf
What Makes Content Viral?



         ?                                        Experience created to
                                                  change attiudes, behaours




              http://marketing.wharton.upenn.edu/documents/research/virality.pdf
What Do
People Share?
The “Social Core”
Why Do
People Share?

                http://www.bjfogg.com
“It’s so cool”   “Everyone else
   Principle       is doing it”
                    Principle



                      Experience created to
                      change attiudes, behaours
Automated
 Structure
             Digital technology
             structures the persuasive
             experience

             Repeatable
             automated
             Strucutred by computer
reducing friciton
Social
Distribution
               The persuasive experience
               is shared from one friend
               to
               another.

               FB = high-trust communit
               friends vs. strangers
Huge
Social
Graph
         : The persuasive
         experience can potentially
         reach
         millions of people
         connected through social
         ties or structured
         interactions.
25% of Internet traffic
      is social
750M Users
120 Friends
20% on FB
10% on Twitter
Technology doesn’t
     matter.
               25%

               paul revere
Hypothesis:

1-1 > 1-Many
Let’s do an
experiment.
www.wil.lt/fowa
Rapid
Cycle
        The persuasive experience
        can be distributed quickly
        from one
        person to another
Consider the Following ...


    E             A

           S
Consider the Following ...
Consider the Following ...


E
Consider the Following ...


E           A1
Consider the Following ...
                 A2


E           A1
Consider the Following ...
                 A2


E           A1        A3
Consider the Following ...
                 A2        A4


E           A1        A3
Consider the Following ...
                 A2        A4


E           A1        A3




      S
Consider the Following ...
                 A2        A4


E           A1        A3




      S               ?
Consider the Following ...
Consider the Following ...


    E
Consider the Following ...

          2 months


    E                A
Consider the Following ...

          2 months


    E                A
                     6 months


            S
Consider the Following ...

          2 months


    E                    A
                     ?   6 months


            S
Short cycle
times are key.
                 internet has sped up viral
                 cycle
Measured
 Impact
            The effect of the
           persuasive experience is
           obser vable by
           users and creators
Viral Coefficient
k-Factor
average number of
                                                  additional users each
                                                  new user brings in




http://www.think-through.com/Blog/wp-content/uploads/2011/02/Viral-Growth.jpg
X*Y
    X = ave # invites
Y = % invite acceptances                              Noah Kagan
                                                      improve x: figure out a way to
                                                      get them to send more invites.
                                                      Or return more times to be able
                                                      to invite more often.
                                                      1 increase y: work on ways
                                                           the recipient is more likely
                                                           to accept an invite.

                http://okdork.com/2008/04/22/learning-viral-the-basic-viral-model/
Phew ...
Persuasive
Experience
       Experience created to change attiudes + behaours

       You need to make an impact to change passive bystanders
       into active users

       People’s attention is bombarded with many things

       hinges on social influence
Automated
 Structure
             Digital technology
             structures the persuasive
             experience

             Repeatable
             automated
             Strucutred by computer
Social
Distribution
               The persuasive experience
               is shared from one friend
               to
               another.

               FB = high-trust
               community
Huge
Social
Graph
         : The persuasive
         experience can potentially
         reach
         millions of people
         connected through social
         ties or structured
         interactions.
Rapid
Cycle
        The persuasive experience
        can be distributed quickly
        from one
        person to another
Measured
 Impact
            The effect of the
           persuasive experience is
           obser vable by
           users and creators
Andrew Chen’s
     “Crucial”
Viral Loop Design
       Stages
       http://andrewchenblog.com/2009/09/23/5-crucial-stages-in-designing-your-viral-loop/
OF VIRALITY
VIRAL LOOP
Strategize
     What is your value proposition?

        What is your social core?
                         Develop your core stratgy around the loop

                         How will a user move through your product and
                         eventually invite their friends

                         How does loop fit with core product

How do users move through your product?
                         what is your value prop

                         Qualitative, predictive
Implement
Rapid development of product + loop

        Focus on the MVP
                       Develop your core stratgy around the loop

                       How will a user move through your product and
                       eventually invite their friends

                       How does loop fit with core product

 Lean code in multiple repositories
                       what is your value prop

                       Qualitative, predictive
Implement
Rapid development of product + loop

        Focus on the MVP
                       Rapid development of product and loop
                       build both together

                       focus on MVP

                       keep code lean so you can iterate fast

 Lean code in multiple repositories
                       prototype

                       keep in separate repos
Launch
Launch fast, get users faster

Beg, borrow, & steal traffic
                   fast

                   get traffic quickly

                   successful companies have often been enbarrassed by
                   their first product iteration

      Be embarrassed
Optimize

{ Hypotheses } & { Tools to test them }
                        hypothesis & tools to be able to test them

      A/B Test, Cohort Analysis
                        A/B test every aspect

                        Quantitavie, data driven decisions

                        Try:
                        shrink funnel steps

     Takes months, 2 outcomes
                        rearragne look and feel

                        diferent value prop wordings

                        increase # invites

                        tradeoff bet ween high growth potential and UX

                        months
Refine
        Polish

     Focus on UX Only when working

                 Polish, UX

                 Become less embarrassed


Become less embarrassed
                 if too much virality, great time to run tests
Double
Phew ...
Viral loops are core.
Short cycle
times are key.
Need tools to
measure & analyze.
Barbara
@BarbaraEMac
 Barbara@GetWillet.com




                         www.willetinc.com

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