Thanks to a little free time over Thanksgiving, I was able to tackle my massive pile of “to-be-read” books over the holiday. First on the list was Adam Penenberg’s “Viral Loop”.

In it, Penenberg discusses the viral nature of today’s Web 2.0 success stories. As a precursor, he examines some historical case studies to demonstrate that viral marketing has been around a lot longer than most people think. Who knew Tupperware, the famed brand responsible for housing people’s leftovers, was the first to employ the tactic. They recruited thousands of women after World War 2 to host Tupperware parties and had the host act as a direct sales rep for the brand.

By motivating each hostess with a financial incentive for the success of each party, Tupperware was able to mobilize an entire army of housewives, pushing their brand to millions.

Penenberg also explores the idea that viruses are a biological imperative. Humans seek out opportunities to pass on interesting content and products to our social networks. Viral companies take full advantage of the fact that we love to share with one another. As he puts, it “We are hard-wired to socialize.”

He goes on to dissect the Obama campaign, which one could argue would not have succeeded without its viral components. There were three cornerstones essential to Obama’s victory that apply to anyone starting or running their own business:

• A short, clear positioning statement

• The multiplier effect achieved when the campaign shared user generated content. They proactively promoted the creativity of supporters.

• Their focus on the long tail. They didn’t care about huge donations from corporate America. Rather they tried to mobilize normal people like you and me to donate what they could.

As the book unfolds, we learn about companies like Hotmail, Ning, Flickr, YouTube, and Facebook – all obvious viral sensations. Penenberg breaks down the success of each and conveniently draws some conclusions around characteristics they all share.

If you’re thinking about launching your own viral marketing campaign or building virality into your next product, here are some important factors to consider:

• Web-based – frictionless

• Free – Start Free then overlay premium services

• Organizational Technology – Do not create content, just let your user organize it i.e. Google

• Simple concept – Easy and intuitive

• Built-in virality – Users spread out of own self interest

• Fast Adoption

• Exponential Growth – Each user attracts more users

• Virality ceofficient – Must exceed 1.0 for exponential growth. (Virality coefficient = the number of additional members every new member brings.)

• Predictable growth rates – If properly designed, product should spread at a constant rate

• Network effects – The more who join, the more who have an incentive to join

• Stackability – Viral networks laid over the top of one another. i.e. YouTube on Facebook

• Nondisplacement – A tipping point, where it is impossible for competition to enter a market

• Ultimate saturation – When network has spread far and wide and reaches a point of maturity. Growth will level off.

I’d highly recommend this book to people wanting to learn more about the origins of viral marketing or how to implement viral marketing programs for their own companies. My approach to reading these types of books is simple; If I can get one new good idea out of book I’ve read, I consider it a win. With this book, I got many. Happy reading.

Now there are a number of lists out there featuring books for entrepreneurs and businesses, but we thought we’d share our favorite books from right here in the GH library. If there are books you want to recommend please go ahead and let us know!

Buzz Marketing

Author: Mark Hughes

Subject: Marketing

Amazon Review:

“A must-have book for word-of-mouth businesses! If you rely on word-of-mouth marketing for your business, you need this book to help you think of creative ways to capture attention. I picked up some valuable tips to market my business.”  Read more>>

Why You Should Read It:

When it comes to word of mouth marketing, Buzz Marketing is really the premiere book on the topic. It’s smart, humorous, interesting and easy to read.

Raving Fans

Author: Ken Blanchard & Sheldon Bowles

Subject: Customer Satisfaction

Amazon Review:

“Core Principles of Customer Service. A fast read that focuses on the core principles of customer service. More than anything, think of this as a means of establishing customer-centric thought patterns in your personnel.”  Read more>>

Why You Should Read It:

This book has been around for over 15 years and yet the principles of going above and beyond for your customers still apply today. It is a simple yet valuable book.

Who Moved My Cheese

Author: Spencer Johnson

Subject: Motivation & Change

Amazon Review:

“Who Moved my Cheese…A Way to Think About Change. The book of the week was Who Moved My Cheese? by Spencer Johnson M.D. I had a hard time picking up this book because it is metaphor based and, generally, I like non-fiction. However, this book is used by Anheuser-Busch, Apple, Kodak, the Army and many other large organizations. It is used as a tool to shape the minds of the members and give a new perspective on the subject of ‘change.’”  Read more>>

Why You Should Read It:

This book might take you an hour to read but you will most certainly enjoy that hour. Who Moved My Cheese offers a unique and cute perspective on ways people do and don’t adapt to the environment around them.  A good read for management and employees.

The Fred Factor

Author: Mark Sanborn

Subject: Change & Customer Satisfaction

Amazon Review:

“Nice review of the value of going the extra mail. This short book focuses on a mailman Mark Sanborn met, a man named Fred. When the author first met Fred, Fred took an effort to get to know his new customer, and find ways to do a better job as a mailman. This book about the value of doing a better job, how to build relationships, and why we should take initiative”. Read more>>

Why You Should Read It:

Every once in a while we need a reminder on how to go the extra mile for those around us. Sometimes we forget or simply get used to acting a certain way. It is the little changes you make that can improve your life and others’ lives as well.

Viral Loop

Author: Adam Penenberg

Subject: Marketing

Amazon Review:

“A powerful lesson for anyone working in the digital space. Penenberg deftly explores the viral growth of businesses through a few historical stages. Tupperware is a good early example, but the book really takes off when he delves into the dawn of the web, a period the author has a tremendous grasp on. He knows this history and the people who shaped it as well as anyone, and brings to it a shrewd analysis that carries through to the more current examples. Unlike too many other books in the category, it is extremely well-reported.” Read more>>

Why You Should Read It:

Viral marketing has been around for some time but it took the rise of the internet and social networking to really draw attention to it. This book offers some great insights into what works and what businesses can do to grow. Good info, good topic and fun to read.

Tribes

Author: Seth Godin

Subject: Leadership & Marketing

Amazon Review:

“One of the Best Books on Modern Leadership. When I first heard about Seth Godin’s new book Tribes: We Need You to Lead Us from Michael Hyatt and Anne Jackson, I immediately ordered ten copies of it for my newly-formed marketing team at AIM. While the book isn’t specifically about marketing, it is about innovation, leadership, and the spread of remarkable ideas” Read more>>

Why You Should Read It:

There are hundreds of books on leadership but Seth offers a fresh take in this book. While there are certainly mixed reviews on Tribes, the bottom line is the book focuses on the important notion that anyone can and should be a leader.

Buyology

Author: Martin Lindstrom

Subject: Marketing

Amazon Review:

“Best neuoadvertising book I’ve read.Buyology is based off information gathered from numerous studies into the effects of advertising on the human brain. One of these studies conducted was by Lindstrom’s company on a sample of 2018 people from across USA and Europe. Lindstrom presents some interesting facts from his finding in an writing style that makes you want to keep reading it. Its a factual book which is made like a scientific paper to bore you, Lindstrom relates each topic to a real life example and stories.” Read more>>

Why You Should Read It:

If you can get past some of the self-promotion you will find some extremely interesting data when it comes to marketing and our human reactions. The book will get you thinking about how you can use some of these principles in your own business and to me that is what makes it worth reading.

Return on Customer

Author: Don Peppers & Martha Rogers

Subject: Customer Service & Success

Amazon Review:

“What all the big companies are missing. All business decision-makers need to read this book! Peppers clearly articulates what is wrong with many of today’s companies and he shows how business people can focus on their customers to increase shareholder wealth.” Read more>>

Why You Should Read It:

While it doesn’t have the fun or humor some of the other books we have listed on here do, it is a good book that makes you re-think the way businesses often make decisions and remember that customers are your most valuable asset.

The Boy Who Harnessed the Wind

Author: William Kamkwamba

Subject: Inspiration & Entrepreneurialism

Amazon Review:

“A story that well embodies the concept of “the audacity of hope” with no strings attached. Have you ever cried with joy? If not, then here’s your chance. This tale, a true story of determination, conquering adversity and ingenuity lost and found in a hostile landscape, will make you cheer as you follow a young African boy who sets out to do the impossible. It’s a story that well embodies the concept of “the audacity of hope” with no strings attached.” Read more>>

Why You Should Read It:

This book doesn’t fit onto your typical “business book” list but every once in a while you read a book that genuinely inspires you. This true story, written by the main character, shows how determination and perseverance really do pay off. Also a good reminder that sometimes the littlest things can make the biggest difference.

Purple Cow

Author: Seth Godin

Subject: Success & Marketing

Amazon Review:

“How to stand out in business (and life). A short book packed with some good examples and thoughts on how to be remarkable. Some companies you’ll have heard of, but many you won’t have. However, they’re all successful in their various niches, some of them very competitive, because of what they’re doing to stand out in the minds of their customers.” Read more>>

Why You Should Read It:

Make your product, your service and your company remarkable. That is the main point of this book and as an entrepreneur this book will get you thinking about what it is you need to do to stand out against the crowd.

Eat that Frog

Author: Brian Tracy

Subject: Motivation & Productivity

Amazon Review:

“Simple and Straight-Forward. Simple and straight-forward – not lots of mumbo-jumbo about why we procrastinate, but instead on how to avoid it. I thought it was a quick and productive read. Geared more toward the business set, it still rings true in both home life and volunteer organizations. It is a great book about getting things done, of which I am a huge proponent! Don’t talk about it – do it! Highly recommended.” Read more>>

Why You Should Read It:

As an entrepreneur there are often a million little things that need to be done. Eat That Frog is meant to help you become more productive by focusing on your high priority tasks versus all the little things that come up. Quick read.