Here at the Internet Marketing Center we have received hoards of e-mail from people wondering what, exactly, viral marketing is. Everyone wants to know how they can make their client base work for them by harnessing the power of this cutting-edge marketing strategy! Well, it's really quite a simple concept…

Viral marketing allows you to exponentially increase your visibility online by turning your existing network of clients and newsletter subscribers into a giant word-of-mouth referral machine!

So much like a flu virus which can easily spread from one person to many others, awareness of your company can be dramatically increased by persuading your clients and subscribers to refer you to their friends and family.

Still confused? Let me give you a concrete example. You've heard of Hotmail, right? Well, Hotmail is probably the BEST example of viral marketing there is. Why? Because their phenomenal success has been based on their simple tactic of adding a small Hotmail advertisement to the bottom of every e-mail sent by a user on the Hotmail system.

A Hotmail user sends a friend an e-mail. At the bottom of the e-mail, the following advertisement appears:

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Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com

The friend thinks to themselves, "Hey Look! I can get a free e-mail account from MSN Hotmail. Obviously they are a reputable company because my friend So and So has an account with them... I think I'll signup for one too!"

So the friend clicks on the Hotmail link and heads off to get their very own Hotmail account. Essentially, Hotmail has developed the ultimate referral system! Hotmail users promote Hotmail each and every time they send an e-mail.

Pretty powerful, isn't it?!

You see, viral marketing accomplishes two very important marketing tasks:

First of all, it exponentially increases the visibility of your business. An article titled "Word-of-Mouth Drives E-commerce" which appeared in the Global Internet Marketing Newsletter explained that Internet consumers in the US are more likely to tell their friends and family about their online shopping experiences than about favourite restaurants and movies.

What's more, the article, based on a study done by Opinion Research Corporation International, explained that the typical Internet consumer tells 12 additional people about their online shopping experience. This compares to the average US consumer who tells 8.6 additional people about a favourite film and another 6.1 people about a favourite restaurant.

This clearly indicates that, given a quality product or service, consumers are more than willing to spread the good word among their friends and family. The power of these referrals lies in the snowball effect they can have on your business.

Even better still, these referrals can pack more punch than you ever believed possible! Why? Because people who learn about your business via a third party are much more likely to trust you! And establishing credibility is a crucial part of the sales process -- particularly online where consumers fear being "had" by scams and con artists.

You see, a word-of-mouth referral from a trusted friend or relative carries much more weight than self-proclamations of greatness. Think about it…

You're in the market for a rubber pizza. Who should you buy from? There are so many businesses online claiming to have the BEST rubber pizzas. It's hard to know who really does offer the best product and the best service at the most reasonable price.

Fortunately, you suddenly recall your friend mentioning that he bought a rubber pizza from www.BiffsRubberPizzas.com and received a rubbery pizza in record time.

Perfect! The problem is solved. You buy your rubber pizza from Biff. You had visited his web site previously and read his ads. Unfortunately, his promises of fantastic pizzas made from top quality recycled racing tires were similar to every other rubber pizza distributor out there. It was the personal referral from your friend that actually sold you in the end.

Word-of-mouth referrals communicate instant credibility and therefore make closing sales that much easier!

Amazon.com knows this strategy well. Anyone who has ever visited or bought something from this Internet giant has probably noticed how they encourage you to send a gift to a friend or relative. But did you know that with every gift you send, Amazon.com includes a flyer which promotes their products? It's viral marketing at its best!

You send a gift to a friend. They open your package and discover your gift… and the flyer. You have just sent your friend a very subtle -- but VERY effective -- endorsement for Amazon.com.

Mirabilis, an Israeli-based company that signed up twelve million instant messaging subscribers to its ICQ service before its acquisition by AOL for almost $300 million, also harnessed the selling power of their client base.

How? Well, in order to use ICQ, both you and your friends must download the client software. So each new subscriber is compelled to try and persuade their friends and family to download the software as well. The friends, in turn, experience the product first hand, and may repeat the pattern.

Pretty clever, right?! And extremely powerful!

But you don't need to be an Internet giant to make viral marketing work for you! Think about this for a moment… Have you ever opened your e-mail Inbox and discovered a chain letter? Or a joke that has been passed around to all of your friends? Or perhaps a silly cartoon or animation that has made you laugh? If you have e-mail, it's hard to avoid receiving what is referred to by many as "junk mail". In fact, you're probably just as guilty as the rest of us for forwarding these little tidbits on to family and friends.

So what compels us to pass this stuff around? Benefits!

Did the information you receive benefit you in some way? Could it benefit your friends or family members? Did it make you laugh? Do you want to share the humor?

Benefits are what makes us want to forward these messages on… And benefits are the driving force behind viral marketing!

The secret is, if you want people to spread the word about your product or service, they must stand to benefit in some way. Hotmail users don't mind the advertisement that appears at the bottom of each e-mail they send because they have use of a free e-mail account. ICQ users happily promote the instant messaging service to their friends and family because they want to be able to communicate with them online.

So if you would like to turn your current client and subscriber base into a viral marketing machine, then you need to create a win-win situation. Start your own Affiliate program… your affiliates get paid each time they send you a paying customer. Start a contest for your current subscribers… and each time they enter a friend, let them know that they will be entered again. Send them free demo-software or a free demo-eBook that contains valuable information… and make it very easy for them to forward it on to friends and family. Give clients and subscribers who refer new customers a free article containing valuable information. And the list goes on!

Want to give your business a boost? Viral marketing may be your answer! It doesn't have to cost a dime because your customers do the selling for you… the growth potential is explosive… and these third party referrals can make closing sales a breeze!

Take a moment to consider how you can make viral marketing work for you. It is a marketing strategy not to be taken lightly!