Incentivized viral's pros & cons

Pros

Companies in different industries like using Incentivized Viral to help them increase referrals. They can be easier to obtain customers’ personal information through Incentivized Viral as customers can get some free stuff after leaving their or their friends’ contact. It can increase their customer’s data base. Moreover, more and more people like sharing on their blog or forum. They would like to share the “jetso” to the others so that the company's brand awareness would be enhanced finally. The more they discuss, the more opportunities to get the media’s attention. The optimal situation is getting the media’s attention to broadcast the campaign to help the company do a free promotion.

Cons

Incentivized Viral would increase the production cost of the Companies as they have to produce some gifts to the customers. Besides, it is difficult for the companies to outstand their incentive as more and more competitors exist.

Sources: http://viralmarketing2011.blogspot.com/2011/07/incentivized-virals-pros-cons.html

Example of Incentivised viral - Groupon

Incentivized viral is one of the techniques of viral marketing which is an effective way to help company to increase referrals. Therefore, companies would like to offer various incentives for people in order to attract them. I would like to use “Groupon” as an example to explain more to you.

“Groupon” corporates with different companies to offer coupon to the customers. They are now holding a marketing campaign to reward the existing customers. The existing customers can earn $50 for their own use if they recommend their friends to join it. They just have to click a button “Recommend now and get $50 for every success recommendation!” and leave their friends’ email address, they can get $50 credits if their friends purchase in “Groupon”.

That is one of the examples of Incentivized Viral. Customers can be rewarded if they refer someone to the company, so the company can be easier to increase referrals.

Sources: http://viralmarketing2011.blogspot.com/2011/07/example-of-incentivised-viral-virgin.html

Viral Marketing - Incentivised viral

No one would like to give without taking anything, that’s “Give and Take” principle. Therefore, Incentivised viral is an effective way to help company increase referrals as people can be rewarded when they refer somebody to the company.

Incentivised viral is a type of Viral Marketing’s technique used by companies in which users are offered rewards when they refer their friends to the company. It could be the "Invite friends, get $25" button on the site. The company would like to reward people who gave their friends’ email or contact number to the company. People are more willing to give when they are rewarded. Incentivised viral becomes more effective when the referred person needs to take action for the reward to be given.

Source: http://viralmarketing2011.blogspot.com/2011/07/viral-marketing-incentivised-viral.html