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	<title>Nathan Gwilliam Blog :: Social Media, Social Entrepreneurship, Faith &#187; Viral Marketing</title>
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		<title>Viral Coefficients &#8211; the essential metric for fast-growing social media properties</title>
		<link>http://gwilliam.com/nathan/viral-coefficients/</link>
		<comments>http://gwilliam.com/nathan/viral-coefficients/#comments</comments>
		<pubDate>Mon, 01 Mar 2010 10:12:34 +0000</pubDate>
		<dc:creator>Nathan Gwilliam</dc:creator>
				<category><![CDATA[Online Communities]]></category>
		<category><![CDATA[Social Media]]></category>
		<category><![CDATA[Social Networking]]></category>
		<category><![CDATA[Viral Marketing]]></category>
		<category><![CDATA[e-Business]]></category>

		<guid isPermaLink="false">http://gwilliam.com/nathan/?p=191</guid>
		<description><![CDATA[A viral coefficient is the number of new community members, on average, that each community member brings to the community.  A viral coefficient of 1 means that each member will bring 1 additional member to the community.  One of the secrets to quickly grow social media properties  is to maintain a viral coefficient greater than [...]]]></description>
			<content:encoded><![CDATA[<p>A viral coefficient is the number of new community members, on average, that each community member brings to the community.  A viral coefficient of 1 means that each member will bring 1 additional member to the community.  One of the secrets to quickly grow social media properties  is to maintain a viral coefficient greater than 1.  Here are some examples of member growth rates at different viral coefficients:</p>
<p>(1)    <strong>Viral Coefficient of 0.5</strong> – 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 <strong>200</strong> members (after 10 periods of time). A social network with a viral coefficient less than 1 will stop growing on its own.</p>
<p>(2)   <strong>Viral Coefficient of 1</strong> – 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 <strong>1,000</strong> members in the same 10 periods of time as the first example.</p>
<p>(3)   <strong>Viral Coefficient of 2</strong> – 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<sup>th</sup> period of time, this social network will have <strong>51,200</strong> members.  Having a viral coefficient is like compound interest for social networking.</p>
<p>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:</p>
<p><span id="more-191"></span></p>
<p>(1)    <strong>Create something useful that people want to share with others:</strong> 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.</p>
<p>(2)   <strong>Create a reason for people to share the message with others</strong>:  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.</p>
<p>(3)   <strong>Make it easy for people to share the message with others.</strong> 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.</p>
<p>Here&#8217;s an article explaining <a href="http://robert.zubek.net/blog/2008/01/30/viral-coefficient-calculation/">how to calculate viral coefficients</a>.</p>
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		<title>Viajamos.com.br &#8211; the Brazilian Travel Social Network</title>
		<link>http://gwilliam.com/nathan/viajamos-com-br-the-brazilian-travel-social-network/</link>
		<comments>http://gwilliam.com/nathan/viajamos-com-br-the-brazilian-travel-social-network/#comments</comments>
		<pubDate>Sun, 07 Feb 2010 04:44:01 +0000</pubDate>
		<dc:creator>Nathan Gwilliam</dc:creator>
				<category><![CDATA[Internet Marketing]]></category>
		<category><![CDATA[Online Communities]]></category>
		<category><![CDATA[Social Networking]]></category>
		<category><![CDATA[User-Generated Content]]></category>
		<category><![CDATA[Viral Marketing]]></category>
		<category><![CDATA[e-Business]]></category>

		<guid isPermaLink="false">http://gwilliam.com/nathan/?p=179</guid>
		<description><![CDATA[On Tuesday, January 26th we launched Viajamos.com.br, a Brazilian travel social network.  We created this site for Azul, a Brazilian airline.
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 [...]]]></description>
			<content:encoded><![CDATA[<p>On Tuesday, January 26th we launched <a href="http://viajamos.com.br">Viajamos.com.br</a>, a Brazilian travel social network.  We created this site for Azul, a Brazilian airline.</p>
<p>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.</p>
<p>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.</p>
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		<title>Starting a Social Network with Key Influencers</title>
		<link>http://gwilliam.com/nathan/starting-a-social-network-with-key-influencers/</link>
		<comments>http://gwilliam.com/nathan/starting-a-social-network-with-key-influencers/#comments</comments>
		<pubDate>Wed, 30 Sep 2009 17:44:19 +0000</pubDate>
		<dc:creator>Nathan Gwilliam</dc:creator>
				<category><![CDATA[Online Communities]]></category>
		<category><![CDATA[Social Networking]]></category>
		<category><![CDATA[Viral Marketing]]></category>

		<guid isPermaLink="false">http://gwilliam.com/nathan/?p=162</guid>
		<description><![CDATA[A few months ago I built GenealogyWise.com for one of my clients.  GenealogyWise is a social network for people interested in researching and sharing their genealogy or family history.  In just a few months, this social network already has 3,000+ member-created groups on genealogy topics, 14,000+ registered members and large amounts of user-generated content.
One of the [...]]]></description>
			<content:encoded><![CDATA[<p>A few months ago I built <a href="http://genealogywise.com">GenealogyWise.com</a> for one of my clients.  GenealogyWise is a social network for people interested in researching and sharing their genealogy or family history.  In just a few months, this social network already has 3,000+ member-created groups on genealogy topics, 14,000+ registered members and large amounts of user-generated content.</p>
<p>One of the keys to successful launch of this social network was that a list of &#8220;key influencers&#8221; in the genealogy sector was developed.  Then, we reach out to those key influencers when GenealogyWise was in beta and invited them to be the first members of the social network.  Not only did many of those key influencers join, but they also invited their friends, posted on their blogs, and told others about it on other genealogy communities.  <span id="more-162"></span></p>
<p>Yesterday I read a blog entry about a Broadway musicals social network, <a href="http://broadwayspace.com">BroadwaySpace.com</a>.   Much of their success is credited to getting Broadway actors and other celebrities to join their social network.</p>
<p>The book <em>Influencer </em>contains the story of a PhD who took a job for a university trying to get local farmers to adopt new, more effective wheat seed.  The PhD was able to get one farmer to test the new seed.  That farmer had a bumper crop, however, the other farmers were still unwilling to use the new wheat seed.  The PhD had made the mistake of selecting a test farmer that was not trusted and actually hurt the wheat seed adoption instead of helping his efforts.</p>
<p>It is important that the first people to test a concept are &#8220;Influencers&#8221; who will give the concept credibility. It is very important that the first members of a social network are the right members.  If they are true &#8220;Influencers&#8221; they will serve as a large part of the catalyst for growth.</p>
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		<title>FamilyLink Becomes a Top 100 US Web Property</title>
		<link>http://gwilliam.com/nathan/familylink-becomes-a-top-100-us-web-property/</link>
		<comments>http://gwilliam.com/nathan/familylink-becomes-a-top-100-us-web-property/#comments</comments>
		<pubDate>Thu, 25 Jun 2009 21:21:04 +0000</pubDate>
		<dc:creator>Nathan Gwilliam</dc:creator>
				<category><![CDATA[Business Management]]></category>
		<category><![CDATA[Innovation]]></category>
		<category><![CDATA[Viral Marketing]]></category>
		<category><![CDATA[Web Analytics]]></category>
		<category><![CDATA[e-Business]]></category>

		<guid isPermaLink="false">http://gwilliam.com/nathan/?p=156</guid>
		<description><![CDATA[For years, one of my goals has been to help create one of the 100 most popular web properties. Since last August I have been privileged to spend much of my consulting time working for a client named FamilyLink, the world&#8217;s largest family-related social network.  FamilyLink operates the We&#8217;re Related Facebook application, which is the [...]]]></description>
			<content:encoded><![CDATA[<p>For years, one of my goals has been to help create one of the 100 most popular web properties. Since last August I have been privileged to spend much of my consulting time working for a client named FamilyLink, the world&#8217;s largest family-related social network.  FamilyLink operates the We&#8217;re Related Facebook application, which is the 6th most popular Facebook app.  Through this application, it&#8217;s iPhone application, its ad network, its websites and other projects, FamilyLink helps to connect families. FamilyLink has only been around for a couple of years, but already has more than 40 million registered members and delivers hundreds of millions of ad impressions per month.</p>
<p>Today FamilyLink became the #99 most popular US web property, according to Quantcast:<br />
<a href="http://www.quantcast.com/p-86YkM5oSeBMSE#summary">http://www.quantcast.com/p-86YkM5oSeBMSE#summary</a></p>
<p>Congratulations FamilyLink for your phenominal growth.  Thank you for letting me part of this amazing ride.</p>
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		<item>
		<title>Reflections of Christ</title>
		<link>http://gwilliam.com/nathan/reflections-of-christ/</link>
		<comments>http://gwilliam.com/nathan/reflections-of-christ/#comments</comments>
		<pubDate>Mon, 28 Apr 2008 04:38:33 +0000</pubDate>
		<dc:creator>Nathan Gwilliam</dc:creator>
				<category><![CDATA[Internet Marketing]]></category>
		<category><![CDATA[Jesus Christ]]></category>
		<category><![CDATA[Online Missionary Work]]></category>
		<category><![CDATA[Viral Marketing]]></category>

		<guid isPermaLink="false">http://gwilliam.com/nathan/?p=53</guid>
		<description><![CDATA[Each year, the Mesa Arizona LDS Temple hosts the largest annual, outdoor easter pageant with hundreds of cast members, an enormous set, and amazing costumes and music.  The pageant has been held annually for 70 years, and I have had the privilege of attending many times.
This year, in addition to the pageant itself, the [...]]]></description>
			<content:encoded><![CDATA[<p>Each year, the Mesa Arizona LDS Temple hosts the largest annual, outdoor <a href="http://easterpageant.org/">easter pageant</a> with hundreds of cast members, an enormous set, and amazing costumes and music.  The pageant has been held annually for 70 years, and I have had the privilege of attending many times.</p>
<p>This year, in addition to the pageant itself, the story of Christ was told through a special presentation of video, photography and music in the Visitor&#8217;s Center.  This special presentation, <a href="http://reflectionsofchrist.org/">Reflections of Christ</a>, was created by <a href="http://reflectionsofchrist.org/about/index.html">talented artists</a>, including my friend Jason Barney, who produced the music.<span id="more-53"></span></p>
<p>The presentation at the Visitors Center has touched many thousands of people who attended.  However, this week Richard Miller showed me the <a href="http://reflectionsofchrist.org/">website</a> for the project.  I was moved by a beautiful introduction with photography and music.  Then, after I registered, I found 13 additional videos about the project in the &#8220;videos&#8221; section.</p>
<p>This website has only been online for a couple of months, but according to Quantcast it received more than <a href="http://www.quantcast.com/reflectionsofchrist.org">15,000 unique visits</a> in March.  This is a great example of the marketing concept that great sites don&#8217;t have to pay for advertising, they spread virally.  <a href="http://reflectionsofchrist.org/">ReflectionsofChrist.org</a> would definitely fit in the &#8220;great sites&#8221; category.</p>
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		<title>The Credibility of Non-Authoritative Sources</title>
		<link>http://gwilliam.com/nathan/the-credibility-of-non-authoritative-sources/</link>
		<comments>http://gwilliam.com/nathan/the-credibility-of-non-authoritative-sources/#comments</comments>
		<pubDate>Sun, 06 Apr 2008 07:34:30 +0000</pubDate>
		<dc:creator>Nathan Gwilliam</dc:creator>
				<category><![CDATA[Business Management]]></category>
		<category><![CDATA[Internet Marketing]]></category>
		<category><![CDATA[Viral Marketing]]></category>
		<category><![CDATA[e-Business]]></category>

		<guid isPermaLink="false">http://gwilliam.com/nathan/?p=32</guid>
		<description><![CDATA[When you want to buy a new car, do you go to the auto manufacturers&#8217; websites (i.e. Ford.com or Chevrolet.com) to find out which vehicle is the best, or would you prefer to go to a 3rd-party auto website where you could read hundreds of car reviews and ratings by vehicle owners?  Which information [...]]]></description>
			<content:encoded><![CDATA[<p>When you want to buy a new car, do you go to the auto manufacturers&#8217; websites (i.e. Ford.com or Chevrolet.com) to find out which vehicle is the best, or would you prefer to go to a 3rd-party auto website where you could read hundreds of car reviews and ratings by vehicle owners?  Which information would you trust more and which would you feel is more biased?</p>
<p>This concept of trust derived from non-authoritative sources  is an essential element in what is making the Internet successful.  If you want to know which book is the best, would you trust the review of the book publisher, or the <a href="http://www.amazon.com">Amazon.com</a> reviews from dozens of people who have read the book?<span id="more-32"></span></p>
<p><a href="http://www.richardkmiller.com/blog/">Richard Miller</a> sent me the following quote about &#8220;anti-authorities&#8221; (or &#8220;non-authoritative sources&#8221;) from <em>Made to Stick</em>:</p>
<blockquote><p>&#8220;A citizen of the modern world, constantly inundated with messages, learns to develop skepticism about the sources of those messages. Who&#8217;s behind these messages? Should I trust them? What do they have to gain if I believe them?</p>
<p>&#8220;A commercial claiming that a new shampoo makes your hair bouncier has less credibility than hearing your best friend rave about how a new shampoo made her own hair bouncier. Well, duh. The company wants to sell you shampoo. Your friend doesn&#8217;t, so she gets more trust points. The takeaway is that it can be the honesty and trustworthiness of our sources, not their status, that allows them to act as authorities. <em>Sometimes antiauthorities are even better than authorities.</em>&#8221; (<em>Made to Stick</em>, pp. 136-37, emphasis added)</p></blockquote>
<p>In the Book of Mormon, a prophet named Alma was teaching the people in a new city.  Alma was the authoritative source.  However, the people did not believe him.  A man named Amulek, who was well-known in that community, stood up and became a witness of the message Alma had shared.  Amulek was the non-authoritative source, and with his added testimony the people believed the message of Alma (see <a href="http://scriptures.lds.org/en/alma/10/4,10,12">Alma 10:4,10,12</a>).</p>
<p>As with Amulek, members of the LDS Church can add their non-authoritative voices with even more credibility in certain situations than the Church itself.   This is because co-workers, neighbors and friends will often trust their their friend more than the Church itself.</p>
<p>This same concept applies in most industries.  Hopeful adoptive parents, for example, would much rather get a referral to an adoption agency from someone who had a good adoption experience.    Businesses need to provide tools for their customers to share their non-authoritative voices (such as testimonials or blogs), and then feature this content in a visible way.</p>
<p>In doing this, though, the businesses need to be careful to show some less-flattering voices along with the good.  If a company only shows the good reviews and responses, then the censorship will destroy the credibility.</p>
<p>Also, businesses need to do their best to fill industry-specific review sites with good information about their products.  For example, a book author needs to have readers who liked her book to write reviews on Amazon.com and BN.com.  A lawyer, dentist or doctor, might encourage customers who had favorable experiences to publish their reviews of those professional services on business review sites (<a href="http://www.insiderpages.com">InsiderPages.com</a>, <a href="http://www.yelp.com">Yelp.com</a> and others).</p>
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