Basis of tell-a-friend software

How many times have you received an email joke and also forwarded it to all your email contacts? How many times have you tried convincing friends to watch a movie that you have seen for several times? You might not be conscious about it but you have already participated in several marketing campaigns. Spreading rumors, fads, and email jokes are just some examples of viral marketing. Traditions, religion, and superstitions are also transmitted in this manner. Hence, viral marketing is not really new as a concept. It is also not always commercial in purpose. The development of sophisticated marketing tools such as the tell-a-friend software can be traced back to ancient cultural phenomena.

Humans are social beings. The need for community belongingness is very strong that it is an important factor in determining the behaviors of individuals. This need is also apparent in online communities. People who are socially connected tend to share information in many levels. Anything that is interesting, useful, or entertaining tend to be shared and transmitted much faster and more successfully than boring things. A really funny email joke is an excellent example of this. This same concept of spreading information is the fundamental principle that guided the development of marketing tools such as the tell-a-friend software.

The earliest versions of tell-a-friend software were commonly used by social networking websites. The success of social networking sites can largely be attributed to this software. It allows the instantaneous sending of invitations and updates. It allows the efficient extraction and dissemination of data among members of social networks. This same concept is now being used by many ordinary online marketers and start-up entrepreneurs. Many free open source software resources have become available that the price of referral software has drastically dropped. Some simpler versions are even available for free.

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Incentives to join a recommend-a-friend referral system

Some online entrepreneurs think that the quality of the products or services that they offer is enough to attract a deluge of patrons and sustain a profitable business. This might be true but considering the stiff market competition, it is difficult to establish a reputation before first being known by the target market. Even if there is big demand for the products or services that are being offered, the target market cannot be expected to patronize the business if it is unknown. Hence, the promotional and advertising stage is a very important stage in business development. Even if the business already has a well-established reputation, promotions and advertisings are still necessary. The recommend-a-friend marketing strategy is one of the effective means of promoting and advertising an online business.

Not unless you are going to make your referral system mandatory in completing a transaction, it is difficult to motivate your new customers to refer your business to their contacts. Providing incentives such as discounts and earning opportunist may encourage referrals but these incentive schemes can totally miss the point. After all, you are in business to offer your products or services and not to bribe your customers to patronize your business. Most incentive schemes are doomed to fail if they become the focus of patronizing a business. Your recommend-a-friend referral system must be based on something more solid, legitimate, and sustainable.

The first thing that you should consider in setting up an online business is the need or demand for the products or services that you are offering. Your business must be answering some practical needs or artificial wants. The focus of your business must be satisfying the customers and not merely generating profits. Another important aspect of setting up a business is packaging or how you are going to present your business. Your products and services do not need to be totally unique but they have to be of high quality. They must be competitive enough to attract customers. Your recommend-a-friend referral system will only work well if the customers are fully satisfied with the quality of the products or services that you are offering.