How to Create a Viral Loop

By Vlad Gozman, Serial Entrepreneur and Founder and CEO of involve.me< / em>. Follow @vladgozman on Twitter.

With the rise of meme culture, TikTok, and other social media platforms, it's no wonder companies are trying to figure out how to create content that will "go viral." But what does it actually mean for something to go viral?

A viral loop occurs when a company creates a product or service that is so valuable that customers are willing to share it with their friends and followers, who will in turn do the same. A Nielsen study found that 92% of people trust recommendations from friends and family more than any other form of marketing.

Creating a viral loop for your business has many benefits. First of all, it's a very cost effective way to market your product or service. Costs do not scale linearly, as they would with traditional marketing methods; on the contrary, the more people who use your product or service, the less it costs to acquire new customers. In fact, once a viral loop starts, there is no marginal cost to acquiring new customers.

Second, viral loops generate high-quality leads. Because potential customers come to you through word of mouth from people they know and trust, they are more likely to be interested in what you have to offer. These customers, in turn, are more likely to stay and become long-term loyal customers.

Finally, viral loops can lead to exponential growth. Unlike traditional marketing methods, which tend to produce linear growth, a successful viral loop can result in explosive growth.

The stages of a viral loop

Many companies think virality is a lucky accident, but the truth is, there's a science to it. A viral loop usually goes through several clearly defined stages.

For a viral loop to exist, there must be someone who is interested in your product or service (we'll call this the "prospect"). This prospect must be converted into a new customer.

Once the new customer uses your product or service, you need to encourage them to share it with their friends and followers. This can be done in several ways, such as offering a discount or giving them access to exclusive content.

If the new customer likes your product or service enough to share it, you've reached the sharing stage. This is where social media comes in; if a customer shares your product on their platform of choice (like Facebook, Twitter, or Instagram), it has the potential to be seen by hundreds or even thousands of people.

If enough people see the shared content and are intrigued enough to try your product or service, you've reached the seed stage. At this point, a social network begins to form around your product, with customers sharing it and talking with their friends.

As more and more people find out about your product or service, you will reach the continual referral stage. This is when new customers start signing up or using your product because they were referred by someone else.

Finally, you reach the cycle repeat stage. This is when the viral loop begins to repeat itself, with each new customer acquired in turn bringing in even more customers.

Elements of a Successful Virus Loop

Not every company, product or service is suitable for a viral loop. For your viral loop to be successful, a few key elements need to be in place.

First, your product or service must provide real value to customers. If it's not something people actually want or need, they won't bother sharing it with others.

Second, your viral loop must be profitable. For customers to be willing to recommend your product to others, there needs to be some kind of incentive for them to do so. However, this incentive cannot be so expensive that it eats into your profits.

Third, a successful viral loop is usually two-sided. That's to say,...