Advertising will be left to those with losing products,” says Grant. And he might be right.
It’s not what David Ogilvy had in mind when he claimed that half of every ad budget is wasted – just knowing which half was the problem.
The new generation of entrepreneurs will answer back – pretty much all your ad budget is wasted if you ignore the social layer.
Grant’s company, a Y-Combinator start-up, is a platform for referral programs. But it is a platform for referrals taken out of the old affiliate business and placed in the hands of the average consumer.You are the natural affiliate of any good product.
Curebit have built a post-purchase referral model which allows buyers of product to share a discount offer with their social circle. So, say I just bought widget x. A post-purchase screen tells me I can get a back-dated discount if I share an offer with my network and someone in that network buys. Anyone in my network will get a discount too, if they buy within, say, 3 days.
In the process of building out Curebit – founded in 2010 – Grant and his colleagues have found out a few precious things about referrals.
When people come on to an e-commerce site through a referral they are 3 – 5 times more likely to buy than when coming in cold.
Sharing referrals on Facebook and through Email is a lot more effective than sharing via Twitter.
Behind the scenes Curebit is curating a knowledge chest of insights about what works in referrals, what types of people make the most effective referrers, and how content and language need framing to increase conversions in highly targeted audiences.
Advertising built on crowsourcing!