Right after that I started to think about what other series would i write when suddenly Amal from Bukalapak mentioned me on Twitter, asking my opinion about Startup Indonesia’s Growth Hack.
Later on, i Ilook through my old files and found an email addressed to my students, which I wrote a day after Peter Kohar (cofounder TDWclub.com and Theconversion) shared in my teaching class, it was around early 2012.
Growth Hack itself have various definition, one popular definition is the marketing strategy which been used by technology startups by the combination of marketing and technology, and was first told by Sean Ellis.
Before the term Growth back became popular on the middle of 2012, I called it “traction strategy”
While according to me, viral marketing means “how do you make a situation where a coming user/customer are the result of those user/customer who came by before.
This might be not the best growth hack strategy, but as far as i knew viral marketing strategy is a strategy with outstanding result with less effort.
The following is the e mail I addressed to my students
Yesterday Peter Kohar told about the business model that financed by customer which run in order to launch the website TDWclub.com, but perhaps Peter’s explanation yesterday was not too clear. So I will re-explain in the following:
The competition is to combined good contents (motivational Tung Desem’s content) and incentive.
The concept of this viral competition is where the audience must invite as many friends as possible to get the prize.
The period of this competition is a month before the TDWclub’s website launch.
First is to set the cost, for example per acquisition every 1 user cost 10 thousand.
If you succeed to invite 10 members to fill their email: you get to download 1 video TDW worth Rp 100 thousand, for free. (100 thousand numbers obtained from: 10 x 10 thousand members acquisition cost per user)
If you succeed to invite 20 members to fill their email: you get to download 1 video TDW worth Rp 200 thousand, for free.
If you succeed to invite 30 members to fill their email: you will get a Rp 300 thousand USB.
If you succeed to invite 100 members to fill their email: you will get Gift of something (anything) at the price of Rp 1,000,000.
Prize will be deliver 2 weeks after the launch.
There’s an affiliate link from the inviting user, inside the invitation. So who is inviting who will be noted.
In the period of 30 days before to 14 days before the launch, there will be a sales conversion from the collected mail and Peter Kohar already have a prediction about conversion rate history. Peter also knew that mail marketing is the suistainable strategy to get sales rentention. (Read : Perbandingan 7 cara mendatangkan traffic untuk toko online)
Historically, Lets say that time was 5%,
From 10,000 email collected until 14 days after the day, if 5% of it buy then he will get a profit.
Profit will be used to pay for the prize which been promised to deliver after 2 weeks.
This business model called with Business mode campaign financed by customer.
TDWclub.com did this in 2008 when they were launching.
In a similar way, Jajalindo.com, a startup travel founded by several BInus students which already collapsed, did this in the end of 2011.
They did a “say hello to Jajalindo” campaign.
Pay an attention to this sentences: ” Last step, spread your link. the more click and registration on www.jajalindo.com, then your chances to get an iPad 2 and other prize are getting closer!”
Giving a prize for around 10 to 15 million, this competition bring about 30thousand likes, and web account (+email) in jajalindo.com web in 3 months. at that moment, facebook not yet having an algorithm edge rank, so 30 thousands likes could be consider as a good traffic generation result.
I once have talk bout this viral contest before in the article @BramantyaFP Juara Dunia SEO Membuka Rahasia Facebook Viral Contest untuk Meledakkan Omzet Toko Online.
To know this strategy and to execute it is really different like the heaven and earth, because to administrate the points collected by user via various channel (FB, Twitter, Youtube, etc) sometimes not so easy, there are a couple of time when i asked Bram whether he would help a startup/brand to handle their viral contest and he always say “i dont want to do that again, it’s too tiring”.
Have a nice day.