Comments on: The Viral Expansion Loop Made Simple http://capecodbranding.com/blog/2009/02/01/the-viral-expansion-loop-made-simple/ bee enlightened Sun, 27 Sep 2009 04:11:01 +0000 http://wordpress.org/?v=2.9 hourly 1 By: CCB http://capecodbranding.com/blog/2009/02/01/the-viral-expansion-loop-made-simple/comment-page-1/#comment-96 CCB Tue, 03 Feb 2009 00:58:38 +0000 http://capecodbranding.com/blog/?p=1834#comment-96 Very good comment - here are my thoughts on ROI. My opinion is that ROI is achieved indirectly, mainly through capturing the attention of users. Viral expansion loops, specifically social media such as Facebook are unique in that they not only capture attention of users but the users continue to stay "virtually" present to participate in the social networking. The question now becomes "now that you have people's attention what are you going to do with it?" Based on your comment I am going to point you in the direction of a few resources that helped clarify the ROI issue for me: 1. Fast Company article - specified ROI in terms of capturing a large amount of users and selling the social media tool and users to a buyer (this was referenced in my article but I think it is worth restating) - http://www.fastcompany.com/magazine/125/nings-infinite-ambition.html?page=0%2C0 2. HubSpot Video - Describes the transition from outbound to inbound marketing and why it is profitable for businesses to do so: http://blog.hubspot.com/blog/tabid/6307/bid/4551//HubSpot-TV-Inbound-Marketing-Explosion-with-C-C-Chapman.aspx 3. StartUpHustle Article: Describes the difference between push (outbound) vs. pull (inbound) marketing in text form: http://www.startuphustle.com/2008/10/21/push-vs-pull-marketing-and-your-marketing-mix/ I hope you find these resources helpful! -John R. Sedivy Very good comment – here are my thoughts on ROI. My opinion is that ROI is achieved indirectly, mainly through capturing the attention of users. Viral expansion loops, specifically social media such as Facebook are unique in that they not only capture attention of users but the users continue to stay “virtually” present to participate in the social networking. The question now becomes “now that you have people’s attention what are you going to do with it?”

Based on your comment I am going to point you in the direction of a few resources that helped clarify the ROI issue for me:

1. Fast Company article – specified ROI in terms of capturing a large amount of users and selling the social media tool and users to a buyer (this was referenced in my article but I think it is worth restating) – http://www.fastcompany.com/magazine/125/nings-infinite-ambition.html?page=0%2C0
2. HubSpot Video – Describes the transition from outbound to inbound marketing and why it is profitable for businesses to do so: http://blog.hubspot.com/blog/tabid/6307/bid/4551//HubSpot-TV-Inbound-Marketing-Explosion-with-C-C-Chapman.aspx
3. StartUpHustle Article: Describes the difference between push (outbound) vs. pull (inbound) marketing in text form: http://www.startuphustle.com/2008/10/21/push-vs-pull-marketing-and-your-marketing-mix/

I hope you find these resources helpful!

-John R. Sedivy

]]> By: mbAce http://capecodbranding.com/blog/2009/02/01/the-viral-expansion-loop-made-simple/comment-page-1/#comment-95 mbAce Mon, 02 Feb 2009 22:16:20 +0000 http://capecodbranding.com/blog/?p=1834#comment-95 A very detailed and a comprehensive look at viral marketing on behalf of the facebook phenomena. Companies like facebook sure have have long lasting social impact or a viral loop effect as you said. For most online companies it seems to be hard to achieve an actual ROI, but I think facebook has the potential to overcome this and cash in on the value of millions of customer profiles. For sure facebook will standout among others even in the future, but what about others? Im not sure if Twitter has such a high potential yet, but yes it does look promising also. Many other website companies seem to be getting lots of user activity, but most are not able able to turn that into income for the company. I guess my point is, if one aims for a successful and a long lasting viral loop, then they should also have figured out how to turn it into ROI. Generally online is a lot cheaper than brick n mortar, but cash needs to be brought in at some point to be able to expand, as we all know. A very detailed and a comprehensive look at viral marketing on behalf of the facebook phenomena. Companies like facebook sure have have long lasting social impact or a viral loop effect as you said. For most online companies it seems to be hard to achieve an actual ROI, but I think facebook has the potential to overcome this and cash in on the value of millions of customer profiles.

For sure facebook will standout among others even in the future, but what about others? Im not sure if Twitter has such a high potential yet, but yes it does look promising also. Many other website companies seem to be getting lots of user activity, but most are not able able to turn that into income for the company.

I guess my point is, if one aims for a successful and a long lasting viral loop, then they should also have figured out how to turn it into ROI. Generally online is a lot cheaper than brick n mortar, but cash needs to be brought in at some point to be able to expand, as we all know.

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