PlayerSearch Blog

by Ted Kasten, Founder of PlayerSearch

Virtuous Circles

This should be one of the goals of every Internet business model. Every new member that joins Ning brings in two additional users compounded daily. The compounded daily part is the key that makes their customer growth virtuous and exponential. On average, every user that joins today brings in two new users tomorrow…those two new users bring in four new users the next day and so on. After 10 days, that one new user has brought in 1,024 new users. The graph above is a depiction of the growth in customers from a single new user.

We are working on some virtuous aspects for PlayerSearch and the Draft Analyzer which, if done right, will be a key component of their success.  MySpace and Facebook are great examples of the power of virtuous circles (Geocities had similar features as these sites but didn’t have the social networking aspect that creates the virtuous circles and therefore is no longer around).


April 30, 2008 - Posted by | Uncategorized |

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