social networking

clipped from

Ning’s Infinite Ambition

Marc Andreessen and Gina Bianchini

Brain Trust: Ning chairman Marc Andreessen (he built Netscape back in the day), with Bianchini, at the company’s HQ in Palo Alto. | photgraph by Art Streiber

Here’s something you probably don’t know about the Internet: Simply by designing your product the right way, you can build a billion-dollar business from scratch. No advertising or marketing budget, no need for a sales force, and venture capitalists will kill for the chance to throw money at you.

The secret is what’s called a “viral expansion loop,” a concept little known outside of Silicon Valley (go ahead, Google it — you won’t find much). It’s a type of engineering alchemy that, done right, almost guarantees a self-replicating, borglike growth: One user becomes two, then four, eight, to a million and beyond. It’s not unlike taking a penny and doubling it daily for 30 days. By the end of a week, you’d have 64 cents; within two weeks, $81.92; by day 30, about $5.4 million.

Related Posts:

  • No Related Posts
This entry was posted in Marketing, Tech Opinion and tagged . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *