(1)    Viral Coefficient of 0.5 – If a community has 100 members and a viral coefficient of 0.5, then those 100 members will bring 50 new members to the site.  Those 50 members will bring 25 members, and so on, and the community will ultimately plateau at about 200 members (after 10 periods of time). A social network with a viral coefficient less than 1 will stop growing on its own.

(2)   Viral Coefficient of 1 – If a community has 100 members and a viral coefficient of 1, then those 100 members will bring 100 new members to the site, and those members will bring another 100 members to the site.  This will result in linear growth from 100 to 200 to 300 until the community has reached 1,000 members in the same 10 periods of time as the first example.

(3)   Viral Coefficient of 2 – If a community has 100 members and a viral coefficient of 2, then those 100 members will bring 200 members, who will bring 400 members, who will bring 800 members, etc.  By the 10^th period of time, this social network will have 51,200 members.  Having a viral coefficient is like compound interest for social networking.

Fast-growing social media sites, such as Twitter, sometimes forgo advertising during their growth stage in order to maximize their viral coefficient and accelerate their exponential growth. Here are a couple of core principles to improve and maintain strong viral coefficients:

(1)    Create something useful that people want to share with others: The viral coefficient will improve if sharing the information will make the sharer look better or improve their relationships with friends.  Also, if the product is simple, easy-to-understand, free and web-based the “barrier of entry” and “friction” will be reduced and the viral coefficient will generally increase.

(2)   Create a reason for people to share the message with others:  FamilyLink.com members want to invite more family members so that they can know about important happenings in the lives of these people.  Fans of a charity may be motivated to solicit their friends to donate to a charity about which they are passionate.

(3)   Make it easy for people to share the message with others. Viajamos.com.br allows members to easily invite friends from their email or easily post a cool piece of content to Twitter.  FamilyLink.com makes it easy to invite family members on Facebook, and also suggests other members to whom members may be related.

Here’s an article explaining how to calculate viral coefficients.

The site was launched at Campus Party, a huge technology event in Sao Paulo 11 days ago.  Since that time, we have seen exciting viral growth.  Within the last hour, the 30,000th person registered to be a member of Viajamos.com.br.

Members are also actively engaged with the site.  For example, 63,000 photos have already been uploaded to the site, nearly 1,600 topical user groups have been created, 1,500 blog entries have been posted,  500 events have been added to the site, etc.

“Approximately once a decade, a radical new technology emerges that fundamentally changes the business landscape.  In every case, regardless of prior competitive dynamics, businesses that understand and appropriately adopt the technology win, while those that fail to do so lose.  In the 1970s, this was mainframe computing.  IN the 1980s, it was the PC. In the 1990s, it was the Internet.  And today it is the online social graph.” (Clara Shih in The Facebook Era)

The social graph is the world wide web of people.  It is the map of everyone on the Internet and how they are interconnected.  The social graph is for people what the Internet is for interconnected webpages.  Social networks like Facebook, LinkedIn and MySpace are helping to construct this social graph.

Each of these radical technology evolutions has been punctuated by a cycle of innovation, commercialization, emergence of new applications, and then large-scale impact on business.  The online social graph is following this cycle, and is facilitating a “new, more nimble, and more efficient class of businesses that outcompetes those using technology from the previous era.” (Clara Shih)

I started working with the Internet and online communities almost 13 years ago in 1996.  I created Adoption.com, which became the world’s largest adoption service of which I’m aware (measured by the number of people using its services each month).

As my first consulting project I created the initial vision and directed the creation of the first website for Law.com, which I have been told sold for about $20 million within approximately 2 years of launch (unfortunately, I didn’t get any equity in the project).  I also built the Families.com online community and sold it in 2007.

During the last two years I have been doing consulting work for next-generation digital media properties, such as a large iPhone application and the 4th largest Facebook application, with 54 million registered members.

I have also built niche social networks (such as GenealogyWise.com) to leverage the social graph within niche industries.  These niche social networks provide tools that enable members to connect and share content with others who share similar interests.  GenealogyWise is just a few months old, but it already has 13,000+ members, 3,000+ sub-groups on genealogy-related topics, 700+ blog entries, 350+ videos, etc.

How could a social network help your business to seize your opportunity within the social graph?  If you are an accountant or attorney who practices a specific type of law, you could build a social network for people interested in your areas of practice.  If you own an emergency preparedness company or a manufacturing company, you could build a niche social network of your potential clients.   If you are part of a membership organization or are planning an event, a niche social network can help you recruit and develop stronger relationships with members and attendees.  If you are a politician, the social graph is an essential element of your campaign. President Obama’s social media strategy was given a large portion of the credit for his election victories.  If you are interested in sewing or if your child has a health condition, you can build a social network of people who have similar interests.

Then, once you have developed a successful social network, you can generate revenue in a variety of ways, such as selling advertising, directory listings,virtual goods, classified ads, e-commerce and subscription sales.

I have expertise in creating niche social networks, developing social media strategies for businesses, and helping organizations to better monetize their digital media properties. If your business could benefit from qualified, seasoned consulting to better seize the opportunities within the social graph, I would love to help.

Today FamilyLink became the #99 most popular US web property, according to Quantcast:
http://www.quantcast.com/p-86YkM5oSeBMSE#summary

Congratulations FamilyLink for your phenominal growth.  Thank you for letting me part of this amazing ride.

Another client is almost completely dependent on Facebook. This client has seen phenomenal success in building a Facebook application.  However, when Facebook changed their design a couple months back, the prominence of third-party Facebook applications was diminished, and most of the leading Facebook apps have seen a huge dip in traffic.  Because of this recent Facebook strategy, Facebook apps that were too dependent on the Facebook platform must now diversify away from Facebook by building their own websites, and using social media websites such as as Facebook as marketing channels for their own websites, over which they have control.

Being too dependent on a third party who owns or controls a critical element of our businesses, is a recipe for disaster.  It’s like building a skyscraper on leased land.  Sooner or later that lease will come due, and the land owner will have all of the leverage in negotiating the new lease.  Businesses need to be the masters of their own destinies and own or control their key assets.  They need to not put themselves in a position that gives too much leverage to an essential partner.  Businesses in this position need to work quickly to diversify and regain that needed control.

What has been your experience with these type of business relationships that create too much dependence on a third party?

On average, about  16,000 children die from hunger-related causes each day, or one child every five seconds.  About 5.8 million children die from hunger-related issues each year, about double the total population of the state of Utah.  (Source: Black, Robert, Morris, Saul, & Jennifer Bryce. “Where and Why Are 10 Million Children Dying Every Year?” The Lancet 361:2226-2234. 2003.)

If all of the hungry people in the world were combined, the total number would be large enough to be the world’s third-largest country, and more than three times the population of the entire United States.

2007 World Population Rankings

(Source: The Orphan Foundation and State of Food Insecurity in the World, 2008 FAO.”Food Security Statistics”)

Hunger is essentially the most extreme form of poverty, a state in which individuals or families cannot afford to meet their most basic need for food (Source: Are We On Track To End Hunger? Hunger Report 2004. Bread for the World Institute. 2004.)  Hunger manifests itself in many ways other than starvation and famine. Most poor people who battle hunger deal with chronic undernourishment and vitamin or mineral deficiencies, which result in stunted growth, weakness and heightened susceptibility to illness. (Source: Are We On Track To End Hunger? Hunger Report 2004. Bread for the World Institute. 2004.)  Undernourishment negatively affects people’s health, productivity, sense of hope and overall well-being. A lack of food can stunt growth, slow thinking, sap energy, hinder fetal development and contribute to mental retardation.  (Source: State of Food Insecurity in the World, 2008 FAO.”Food Security Statistics”. ) Poor nutrition and calorie deficiencies cause nearly one in three people to die prematurely or have disabilities (Source: “Malnutrition”. World Health Organization.)

Here a a few good websites that are working to fight world hunger:

Action Against Hunger - an international network committed to saving the lives of malnourished children and their families while ensuring access to safe water and sustainable solutions to hunger.

Bread for the World – a non-profit organization focusing on fundraising and lobbying for hunger-related issues.

TheHungerSite.com – by using certain websites, money will be donated to charities that combat hunger issues.

WorldVision – allows you to sponsor a child.

Yesterday Crystal and I purchased the domain name Hunger.net. We would love your thoughts about how we can use digital media and Hunger.net to help solve world hunger.  For example, microlending websites such as Kiva, empower us to help entrepreneurs better provide for their famlies.  Microlending is one of the most effective, sustainable solutions to poverty.  Child sponsorship websites such as WorldVision, help connect great people with and sponsor specific children.  What other ideas do you have about how Hunger.net can make a large-scale difference to help solve world hunger?

Made to Stick talks about a research study that compared the effectiveness of donation requests using different approaches.  One donation request provided statistics about the masses of people in one region of Africa facing hunger and poverty.  The second letter simply told the story of one needy girl from that region and said that all money donated would go to her.   Obviously, the second letter was tremendously more successful.  

People are much more willing to help if they know of a specific need, instead of just helping a cause.  In other words, when people learn of a huge problem they often feel that “someone should do something”, but they feel the problem is too large for them to solve themselves, so they do nothing.  It’s kind of like a room that is so messy you don’t know where to start, so you go do something else.  However, when we connect with a specific person with a specific need, we are much more likely to sacrifice and help, because we know we can do something to make a huge difference to that person with whom we are connected.  The specific connection makes the service much more real and meaningful. 

The Adoption.com Photolisting is an example of this principle that I have observed first hand.   When prospective adoptive parents are able to see pictures and read bios of orphans they often connect with and then adopt a specific child.  Many parents choose to adopt internationally after connecting with a specific child, who otherwise would not have adopted. Many parents who thought they only wanted to adopt a healthy Caucasian infant in the U.S. end up adopting an older, special needs child from a foreign country because of the connection which they formed with that child by using the photolisting.

If I came to your church congregation and spoke about the many foster children in your state who need to be adopted, I might have a few families come talk to me after the service.  However, if I brought 12 of those foster children with me and explained that I needed emergency foster homes for those children that night, ALL of the children would be taken in (if the families were qualified), and most of those children (if not all) would be permanently adopted by families in that congregation.

Think about it.  How many of us would, without a second thought, take in a starving orphan who showed up on our doorstep needing a place to stay?  I believe there is enough food, money, compassion, time, and great people in this world to solve huge social crises such as the world orphan crisis, hunger, needless death to curable diseases, and poverty.  The problem is not a lack of resources, but instead is effectively connecting those resources with great people who would be willing to help.  

So, then the question is how we can create those connections on a scale large enough to solve the otherwise insurmountable social problems in our world.  Kiva has showed us one of the large pieces of this solution by helping to everyday people, like my family, connect with and lend to entrepreneurs in third-world countries.  On-the-ground organizations help qualify and administer the loans.  And, their repayment rate would put to shame EVERY major bank in the United States.  My family tried to make a loan around Christmas time through Kiva, and the system was a little too effective.  There were more than thousands of people making loans and only four entrepreneurs seeking loans.  By the time we read through a newly posted loan and tried to participate in the loan, the full loan had already been fully funded.  There were more people at that time trying to loan than people listed seeking loans.  I just looked at Kiva as I wrote this blog entry, and it looks like there are now 208 active entrepreneurs listed seeking loans.  However, just in the last week more than 2,000 loans have been made by people like you and I, totaling more than $750,000.  This is another example that there is an abundance of great people, food, money, compassion and time to solve the world’s greatest social problems.  We just have to figure out how to create the specific connections.  

I want to build my future career greatly around this concept of creating connections to solve world social crises.  How can we more effectively build connections between great people in need and the great people who would love to help if they were just connected with specific situations? 

However, this week Amazon released a new web-based console for AWS, allowing this service to be run by people like me with a point-and-click AJAX interface.

Read more about it on the AWS blog post.

If you’re building a small-volume website, AWS is overkill, but if you are trying to build a large website, AWS allows you to run on a next-generation hosting platform, developed by Amazon.com and avoid a lot of the headaches that digital media enterepreneurs have had to endure in the past.

Have you used AWS or another next-generation hosting solution, and if so, what has been your experience?