The viral marketing business model was first described by Tim Draper and popularized in 1997 to describe Hotmail’s practice of adding advertising to the outgoing mail of their users. Viral marketing had been around for ages. So, it is word-of-mouth marketing.

It is in the nature of a person’s tendency to “tell their friends”. The terminology, or what we refer to this as, is new. Surveys tell us that the average individual online has at least six close friends they communicate with on a regular basis. If they have a great experience with a product they will on average, tell six people.

When an internet user finds something valuable, informative, hilarious, interesting or free online, they will share it with up to 12 friends. Thus the internet is the backdrop for the most successful viral marketing business model.

Marketing pros insist that in order to sell something, you need to give something away for free. I recently read an e-book about dieting and it was completely free. It made perfect sense. It was written by the marketing department of a supplement manufacturer. He suggested that you share the book with everyone. His goal, of course, was to sell supplements.

He might have sold the book. It contained as much information as many of the diet books that line bookstore shelves, but he realized the value of giving something away, in order to get something. Not only do people love free stuff, they have a tendency to “trust” people or companies that give them something with no strings attached, especially when that something has value.

You will see numerous software programs on the web that offer a free version and a “pro” version. This is another example of a viral marketing business model. If a person sees any free software program, they usually share it with up to 12 people they know would like to try it as well.

Social networking is becoming increasingly popular. People with a Facebook account have thousands of online friends and they communicate with some of them daily. If you can provide something that they want to share, then you may have a viral campaign waiting to happen.

There are other elements of a successful viral marketing business model. The key element is designing the free item campaign for something free that people can share with others.

Alex Jeffreys has created a buzz with a video he put together about a new report. He’s promised to write about the #1 thing that hold us back from making money online.

Aside from the content of his video, I learned three very important lessons that I’ve included in this short little video.

1. Start off with an eyeball-grabbing, gotta-find-out-what-he’s-talking-about subject line.

2. Create curiosity in the first paragraph or 30 seconds of your message.

3. Use a call to action. Give them something to do, site to visit, or action to take.

Watch this little video and let me know what you learned from Alex’s video.

Using Twitter more Effectively

At the moment it seems you can't escape stories about Twitter.  With all the hype and celebrity endorsements, lots of people are asking “how do I use Twitter?”.   

There are plenty of sites out there that will tell you how to use Twitter, but not so many to warn you of the pitfalls.If you take a minute to learn from this list of useful Twitter tips then you'll be Twittering away with the best of them.

DO self censor.Unless your updates are protected, anyone can see what you are currently Tweeting.Bear in mind the story of the girl who managed to Tweet her way out of a job because a hiring manager read her thoughts on the position she interviewed for.

DON'T confuse Twitter for a chat client.No one wants to see their screen full of irrelevant Tweets from a conversation they're forced to eavesdrop on.

DO remember to retweet.This can be a good way to build up a following of like minded Twitterers.

DON'T endlessly try to sell things.Okay, we get it - you have your own blog.Twitter isn't a one way street - talk back!

DO follow back, but….

DON'T be offended if not everyone follows you back.Users with thousands of followers are unlikely to see your Tweet through the hundreds of other tweets anyway.

DO be funny, informative and creative.

DON’T automatically DM.  This is the Twitter equivalent of spam and a faceless “hi – thanks for the follow” is impersonal and off-putting.

DO use it to get help.When you have built up a reasonable following you’ll find it easy to find answers to your questions quickly.

DON’T twit if your message is likely to exceed 140 characters.Spreading messages over the course of several tweets is just going to confuse and irritate your followers.

These handy hints should see you on your way to getting started.  If you are likely to spend a significant proportion of your online time on Twitter then there are plenty of guides on the net telling you how to use Twitter effectively.