1. Viral Campaigns from an
Investors Perspective
Joysy John
Founder & CEO, FoundersFit.com
@JoysyJ, @startlead
#AngelLab, #FoundersFit
21 Jul 2012, London Match N Hack

2. Agenda
• Introduction
• Why Viral Campaigns work
• How Viral Campaign drives growth
• 3 Things that matter
• Q&A

3. Introduction
Angel Investor, Ex-Banker,
Founder, Social Entrepreneur
Computer Engineer, MBA

4. Why Viral Campaigns work

5. Market for social apps is growing
2005 2012
1 1
2 2
3 3
4 4
5 5
6 6 Wikipedia.org
7 7
8 (U.K.) 8
9 9
10 10
2012 Alexa Global Traffic Rankings

6. How Viral Campaigns Work
Call to action to
User invite friends x = invited
friends
Yes
Accept?
y% = invite accept rate
x * y > 1 gives you viral growth!
Viral loop cycle time impacts how quickly you grow

7. Channels
• Focus on 1-to-Many to get People Engaged
– News Feed
– Profile
– Notifications
– Non User Pages
• Focus on 1-to-1 to re-engage current users
– Email
– Notifications

10. 3 Things that Matter
Users
Acquisition cost
Conversion rate

11. Customer Acquisition Speed Matters
50
Registered Users (MM)
40
Facebook
30 platform launch
20
10 (2)
0
1 3 5 7 9 11 13 15 17 19 21 23
(1)
Months
Source: eBay Investor Presentation, RockYou
(2) eBay starts Q2 98, PayPal starts Q1’00, Yahoo! starts Q1’95, AOL starts Q1’92, Facebook starts Q4’04, and RockYou Starts Q4’05
(3) Facebook data represents active users, which was disclosed on 12/05 and 12/06. Undisclosed active user data is extrapolated by applying an average active user penetration to
global Unique Visitors (per comScore Media Metrix)

12. Customer Acquisition cost matters

13. Conversion (%)

14. Dropbox Conversion rate of 3%

15. Dropbox Conversion rate of 5%

16. Using Metrics to Drive Product Design
X% user dropoff Y invites sent/user Z% invites accepted
Flow A An new users
Flow B Bn new users
• A/B test entire user flows
• A/B test calls to action
• Base decisions off of statistically significant data

17. Role of Marketing / Sales
Q: What channels? Which users? Why?
A: High Volume (#), Low Cost ($), High Conv (%)
 Design & Test Multiple Marketing Channels + Campaigns
 Select & Focus on Best-Performing Channels & Themes
 Optimize for conversion, not just site/landing page
 Match/Drive channel cost to/below revenue potential
Low-Hanging Fruit:
– Blogs
– SEO/SEM
– Landing Pages
– Automated Emails

18. Conclusion
Keep it simple
Think of incentives for sharing
Optimize for conversion
Set up balanced teams