What’s a social media relationship on Facebook worth? In my case, it’s about $90 according to the author of Viral Loop: From Facebook to Twitter, How Today’s Smartest Businesses Grow Themselves.
To illustrate principles in his book, Adam Penenberg, author of Viral Loop provides this tool on Facebook for measuring ‘viral loop value’ in the community. It uses an algorithm that takes into account Facebook’s estimated valuation with your level of activity, the number and activity level of your friends, and your “influence.”
Penenberg’s viral loop leaderboard shows the value of social media celebrities like Ashton Kutcher ($630,000+), Selina Gomez ($593,000+) and Barrack Obama ($1.3 million+) and lesser-known social media power users such as serial entrepreneur Jason Calacanis (> $1000).
Penenberg’s virual loop value application does a great job itself demonstrating the value of social media: the app (paid for by Penenberg) boasted a 13% conversion rate — and attracted more readers than the publisher’s own marketing efforts.
Unlike conventional audience members, users of social networks tend to be committed participants and contributors who create value to the network(s) they frequent. Thus, your value within the community is based on your level of participation.
I recommend Penenberg’s book. It is a tome dedicated to helping marketers understand implications of the viral coefficient. The viral coefficient can be used to track the growth, popularity and level of engagement. It measures how many new users are attracted by each existing user. And, in the case of social networks, it represents the number of new members each additional member attracts.
“The great digital push is underway. We live in an age when the tools of self expression have never been more accessible,” Penenberg said. “Without gatekeepers to filter content, the audience attains a power never before seen.” As a result, Penenberg cites countless examples of companies that were unprepared for the scalability ‘going viral’ requires. The ability to scale along with demand is crutial for success in a viral world… where success is accompanied by the multiplier effect.
To be successful in a viral world, you need to ready to lose control. As Penenberg puts it: “”The more in control we are, the more out of touch we become. But the more willing we are to let a little go, the more we’re finding we get in touch with consumers.”
Viral Videos
This parody video will teach you the “secret strategies” behind many viral videos.
About Troy Janisch
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