Update Lecture06.md

Lecture06.md

@@ -113,6 +113,8 @@ The interesting thing was that it meant that the payload was low: You email one
 
 Another example is Paypal. Paypal is interesting because there are two sides to it, the buyer and the seller side. The other thing that is interesting is that its mechanism for viral growth is eBay. So you can use a lot of things for virality that may not look necessarily obviously viral. If you said to a seller that you were going to send them money - I can’t think of a higher conversion rate. Frequency was low, and payload was low. But Paypal did this thing where they gave away money when you got your friends to sign up, and that’s how they went viral on the consumer side. They didn’t have to do that for sellers, because if I said ‘I am going to send you money via this,’ you will take that. And even on the consumer side they went viral because if someone says ‘Sign up for this thing and you’ll get ten bucks.’ Why wouldn’t you? So they were able to go viral because their conversion rate was high on the buyer and the seller side, not because their payload and frequency was high. Make sense?
 
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 This is a really good way to look at virality if you want to say, ‘Is this product viral?’ Facebook was not viral via email sharing or anything like that. Facebook was purely viral via word of mouth. The interesting thing about Paypal and Hotmail, is to use them, the first person has to send an email to a person who wasn’t on the service. With Facebook, there is no native way to contact people who aren’t on the service. Everyone thinks that Facebook is a viral marketing success, but that’s actually not how it grew. It was word of mouth virality because it was an awesome product you wanted to tell your friends about.
 
 Q: In the first round, it makes sense for there to be a low payload. Will the payload increase in later rounds as the campaign grows and people send more and more e-mails?
@@ -129,7 +131,11 @@ A: Absolutely. If you hit someone with the same email over and over again, or th
 
 Second way to look at virality, which I think is awesome, is by this guy Ed. Ed runs the growth team at Uber now; he was at the growth team at Facebook. He was a Stanford MBA student, and did a class similar to this where they talked about virality and built viral products. The interesting thing is, if you look at Uber, they’re incredibly focused on drivers. It’s a two-sided market place, so they need drivers. It’s a huge part of their focus as a team, even though they’ve got probably the best viral guy in the world at the company.
 
-So with virality, you get someone to contact import (35:12) let's say. Then the question is, how many of those people do you get to send imports? Then, to how many people? Then, how many click? How many sign up? And then how many of those import. So essentially you want people to sign up to your site to import their contacts. You want to then get them to send an invite to all of those contacts - ideally all of those contacts, not just some of them. Then you want a percentage of those to click and sign up. If you multiply all the percentages/numbers in every point in between the steps, this is essentially how you get to the point of ‘What is the K factor?’ For example, let’s says 100 people get an invite per person who imports, then of those, 10% click, and 50% sign up, and of those only 10 to 20% import, you’re going to be at 0.5 - 1.0 K factor, and you’re not going to be viral. A lot of things like Viddy were very good at pumping up stories. They got the factor over 1, which is perfectly doable. But if you’ve got something that doesn’t have high retention on the backend, it doesn’t really matter. You should look at your invite flow and say ‘okay, what is my equivalent to import, how many people per import are invites sent to, how many of those receive clicks, how many of those convert to my site, how many of those then import,’ in order to get an idea of you K factor. The real important thing is still to think about retention, not so much virality, and only do this after you have a large number of people retained on your product per person who signs up.
+So with virality, you get someone to contact import (35:12) let's say. Then the question is, how many of those people do you get to send imports? Then, to how many people? Then, how many click? How many sign up? And then how many of those import. So essentially you want people to sign up to your site to import their contacts. You want to then get them to send an invite to all of those contacts - ideally all of those contacts, not just some of them. Then you want a percentage of those to click and sign up. If you multiply all the percentages/numbers in every point in between the steps, this is essentially how you get to the point of ‘What is the K factor?’ 
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+For example, let’s says 100 people get an invite per person who imports, then of those, 10% click, and 50% sign up, and of those only 10 to 20% import, you’re going to be at 0.5 - 1.0 K factor, and you’re not going to be viral. A lot of things like Viddy were very good at pumping up stories. They got the factor over 1, which is perfectly doable. But if you’ve got something that doesn’t have high retention on the backend, it doesn’t really matter. You should look at your invite flow and say ‘okay, what is my equivalent to import, how many people per import are invites sent to, how many of those receive clicks, how many of those convert to my site, how many of those then import,’ in order to get an idea of you K factor. The real important thing is still to think about retention, not so much virality, and only do this after you have a large number of people retained on your product per person who signs up.
 
 A couple more things we are going to touch on: SEO, emails, SMS, and push notifications.