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Sidestep and Twist by James Gardner

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VIRAL EFFECTS TWIST

Multilevel marketing is an example of a single twist based on increasing returns from observability. It is an instance of a business model which is more widely known as a “viral business” – a business which grows because there is some implicit motivation by platform users to expand usage. Viral businesses and viral products are the result of one of two psychological dynamics. One of the reasons people want to share is because they achieve some kind of personal gain from doing so. The other is because they get to feel good when they share.

In order to build a viral effects twist, then, one needs to construct a platform in which one (or both) of these dynamics increase with consumption. At Amway, the motivation for sharing is ...

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