Five Competitive Advantages: Virality

Five Competitive Advantages: Virality

December 6, 2019 by investor

Competitive advantages increase revenue by 30% over the competition or decrease cost by 30%.

Virality is a key competitive advantage in which users invite other users to join your platform.

Virality reduces your cost of customer acquisition. It’s is different from Network Effects. Network Effects shows the platform increasing in value based on more users participating.

I once had a CEO tell me “I wish I had designed for virality rather than revenue.” If you build virality into your product, you will have a larger pool of prospects to monetize as well as a lower cost of customer acquisition.

For you next project, consider designing for virality.

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Hall T. Martin is the Director of Investor Connect which is 501c3 non-profit dedicated to the education of investors for early stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.