The other day Andrew Chen posted some notes from a CEO summit that I thought we all could benefit from.  Clearly, the old way of acquiring customers is changing rapidly, if you do not understand this new medium, you had better start learning now.

How to get have sustained viral growth:
– Have a great product (ideally in communication or social content)
- Convert user growth ideas into Excel-based hypotheses and clear user funnels
- Build and track each step of your funnels
- Get an initial stream of traffic (Adwords is OK)
- Optimize until every user is bringing in a new user
Timeline: weeks to months

Getting scientific about user acquisition:
– Start with your laundry list of acquisition ideas
- SEO, tell a friend, Twitter, etc.
- Convert into 2-3 testable hypotheses
- “Buy users for $1, monetize at $5″
- “20% of registered users will import addressbooks, >5 of their friends will register”

Viral loops in SaaS/enterprise
- What things do people share? What tools do they use for communication?
- files, wikis, Outlook, Excel, USB keys, etc.
- These are your viral channels (vs Newsfeed/Notifications on Facebook)
- If your value prop can align with a channel, then you might make it viral
- Case studies: Yousendit, Dropbox, Wikis, Basecamp, etc.

How quick-hit viral loops work for consumer products
– Cialdini’s “Influence: The Psychology of Persuasion”
- Quizzes: Social norms
- Top friends, eCards: Reciprocation
- 8 invites left: Scarcity
- But what’s the followup?
- Hide quoted text -

Value propositions for viral loops
– Best value prop is like Skype
- great for both parties (inviter and invitee)
- build deeply into the product (takes 2 to tango)
- Worst value prop is like lots of FB apps
- little to no value for the inviter/invitee
- lots of churn, feels spammy
- Sustainable viral growth is key for long-term value creation

Different acquisition models work for different kinds of businesses
– Vertical social networks -> SEO/SEM
- SaaS/enterprise -> SEO/SEM
- Consumer/communication/social content -> viral
- Themes, decorations for blogs/profiles -> widgets

Optimize your funnels by brainstorming levers
– Lets say you have funnel of Signup -> Download -> Install -> Fill out profile
- Lots of ways to improve
- change the order of steps
- remove steps
- combine steps
- use lightboxes, or longer pages, or progress bars, or lots of other UI tricks
- To optimize just the download-to-install step, you have dozens of options
- headline
- button placement
- “hero” photo or video
- target their OS
- size of download
- AIR
- small installer vs all-at-once
- installer filename
- etc.

Books and more resources
– Adam Penenberg, “Viral Loop”
- Robert Cialdini, “Influence, The Psychology of Persuasion”
- Tim Ash, “Landing Page Optimization”
- David King and Siqi Chen, “Metrics for Social Games” (Slideshare)
(lots of other resources on Slideshare)

Source: Andrew Chen

IGN

Global creative agency ATTIK (www.attik.com) today detailed its role in developing the new visual identity system for IGN Entertainment and its flagship site www.IGN.com, the premier online destination for videogames content and the world’s top website for reaching men aged 18 to 34.

“ATTIK is quite well known for its expertise in helping brands maximize their communications, particularly within youth markets,” said Gary Keith, IGN’s director of brand and marketing partnerships. “With their help, IGN has entered 2010 at the top of its game.”

“IGN.com is the most important, go-to resource for up-to-date, insider information and content for gamers everywhere,” Zienka said. “This was an opportunity for us to build a relationship with one of the brightest publishing companies in the world, and considering that many of us in the studio are gamers and understand that world, it was nice to look at the completed work and realize it was on target. It was also great to get positive feedback from the client and the design and gaming communities.”

Zienka and his colleagues began by evolving the existing IGN.com icon and letterforms to update their look and feel, building upon the visual legacy that has loyally connected hardcore gamers to the site over the past 14 years. Grounded in the iconic “D-pad” used in many game controllers, the site’s new logo also features completely reworked letterforms to give the brand a more contemporary edge.

The new IGN Entertainment logo utilized the custom IGN letterforms developed for IGN.com to create a visual link between the two brands, while maintaining a more formal business-to-business feel to heighten the company’s credibility with advertisers and partners. [PR Newswire]

Our Take: Big surprise here, 18-34 year olds gravitate to online video game sites.  But here is the question:  Is this the type of 18 to 34 year old your business is seeking?  My bet is that the demographic is stock full of 18 year olds and maybe a few unemployed 34 year olds.  Always look at the context.

Source: PR Newswire / RP

Google Adsense

Right around a year ago now, I made my first cent online. It was literally a cent — $0.01 — and it showed up in my Google AdSense account after a certain number of people had viewed an ad for dog food or a shiatsu massager or whatever on my old humor blog.

That first cent was exciting, because it proved that you really could make money online in the way it seemed that everyone said you could — by creating sites populated with ads, and then sitting back and letting the earnings pile up. Then, if the gurus were to be believed, it was only a matter of time before I would be living in Hawaii, while bikini girls used the Mona Lisa to wax my Lamborghini.

So I read a ton about how to use AdSense, took a few courses, and built a bunch of little search-engine-optimized niche websites. I worked and worked and built and built, and eventually I amassed a couple dozen of these little moneymakers.

Slowly, visitors began to come to my sites, click on the expensive Google ads for lawyers and insurance, and make me some money. Then, reasonably content with my Google army, I put those sites on “set it and forget it” mode (like a Ronco Rotisserie) and started something new.

A different way to do it

Specifically, in April of last year, I started the Johnny B. Truant biz. The business model basically consisted of trying to write funny blog posts and generally just hanging out online, and then parlaying that good will into its logical succession, which is, of course, technology services.

I worked very hard, but it didn’t feel like work — especially compared to what I had been doing on the niche sites. It felt like being an amiable jackass in the right places, and meeting people, and kind of screwing around. Eventually it also started to feel like building a business, but that happened slowly and by degrees.

Nine months passed, with both venues making me money in their own unique way.

At the end of 2009, I recorded my second five-figure month in the JBT technology biz, after building between eighty and a hundred blogs for clients in December.

And at around the same time, I got my first ever AdSense check from Google. It was for $111.

The best way to “make money online” is probably not what you think.

Spend a few minutes Googling around for ways to make money online. Go ahead; I’ll wait.

If you didn’t do that search just now, it’s probably because you’ve tried it before and already knew what you would find. Almost every site, course, and guru out there will tell you that to make money online, you should sign up for AdSense (or maybe for a large advertiser’s affiliate program), rustle up some long-tail keywords, and start gaming Google traffic.

I’m not going to tell you that doesn’t work . . . but I am going to tell you that it didn’t work for me, and that it’s unlikely to work for you if you’re even one iota like me.

Here’s why I don’t like the AdSense strategy as a business model:

1. It’s not a business model. Any time you can talk about “monetization,” you’re probably not talking about a real business because “monetizing” a business is redundant. “Monetizing” is slapping a moneymaker on top of something that doesn’t naturally produce income. The way that 99.99% of people dive into AdSense, they’re simply putting something out there and waiting for the dollars to roll in. There is no real planning, no accounting forecasts, no intention down the road to improve workflow or expand offerings or enlarge the sales funnel, no exploiting the best abilities of yourself and partners to create benefit for others.
2. It doesn’t add value. Technicalities aside, there is no real product or service in the way most AdSense “make money online” campaigns are run. There is simply arbitrage. You’re not increasing widget sales; you’re trying to make sure more of theexisting sales will occur through your ads. I learned my lesson trying to play the stock market (and failing) and then investing in real estate (and failing at an epic level): Sustainable incomes come from using your talents to create value for others, not from gambling and playing the numbers.
3. It contradicts the way the Net is supposed to work. Yes, yes, I know . . . some people blog in a heartfelt manner about cabinetry and run cabinetry ads, and visitors click them to buy cabinets and the site owner makes money. But most AdSense strategies are all about gaming the system. When I was creating insurance niche sites, I couldn’t have cared less about insurance. I was simply trying to draw traffic away from the legit insurance sites so that people would click on my ads instead of finding an insurance company a different way. That’s not the way that the Web is supposed to work . . . which is to efficiently connect the searcher and what she’s searching for.
4. It’s anonymous. Few “make money online” strategies will tell you to blog under your own name, include your own picture, and make a big deal about being the guy or gal who created this site. In fact, I spent a lot of my time trying to obscure who I was. Many courses even tell you to use hosting that will generate random, non-sequential IP addresses for each site, so that even Google won’t know that one person owns them all. Anonymity conflicts directly with what I consider to be the most important reasons for my success, which are honesty, authenticity, trust-building, and transparency.

You can do better, no matter who you are

I worked really, really, really hard on those AdSense sites. I worked 15-hour days; I wrote keyword-laced post after keyword-laced post; I entered them in article directories and put them through social media bulk submitters; I launched site after site, tweaked, customized, and researched.

And by doing that, I made $111 in a year.

Maybe I didn’t work hard enough. Maybe I used the wrong system. Maybe, if someone else had done it, they might have done it twice as well. And maybe that same person would have done it for three times as long as I did, building sites for the whole year instead of only doing it for four months.

So yeah, maybe that super-ambitious person might have made $888.

Now, stop and think about that for a second.

Anyone who doesn’t believe that they could start a business today, being themselves, playing to their own strengths, and creating value for others, and not make more than $888 in a year should . . . well, those people should really just stop reading about business right now.

Am I saying that you can’t use AdSense to make money online? No. Am I saying that every “system” for striking it rich on the Net — like creating anonymous niche sites that use AdWords ads to draw traffic to affiliate products — is an impossible scam? No.

I’m just saying that the average person is probably going to have better luck building a real business. Meaning:

• One that you can stand behind publicly.
• One that’s based on helping others in exchange for pay.
• One that benefits from being a real, authentic person.
• One that matches your best abilities to the needs of others.

This Third Tribe thing? This new internet era of being real and honest and open in business and marketing rather than relying on tricks, games, yellow-highlighted text, and the hard sell? It’s real, folks. And at least for me, using that approach turned my Google earnings into an afterthought. [copyblogger]

Source: Johnny B. Truant