"Heyyy girl! I am an ambassador for *insert random skincare or haircare brand here* and it has absolutely changed my life. I wanted to reach out because I know you'd do an amazing job, and I want to share this experience with you! Are you interested in joining the team? I swear you won't regret it All you have to do is recruit two people, and then once they recruit more people, you'll make money!"
The scheme is simple, yet incredibly effective. It employs the same iconic idea that Faberge Organics shampoo advertised in the late 1970s—"you'll tell two friends, and they'll tell two friends, and so on, and so on, and so on..." (Li & Bernoff, p. 130). Sound familiar? That is because pyramid schemes utilize the strategy of energizing the groundswell—they incentivize customers to sell more product by offering special bonuses or goodies. With this newfound sense of status and appreciation, customers spread the word about the company they represent and recruit even more minions to advertise for the company. And so the cycle continues.
Social media influencers are most successful when they can generate a large fan base, usually by making them feel welcome or included. Brands can partner with these influencers and both parties can benefit if the influencers can successfully convince buyers that their advertised product is really worth buying.
...Has anyone else received this type of message from some random girl you used to go to high school with? If so, you have most likely witnessed someone falling victim to the classic "pyramid scheme" setup.
Of course, not every company that energizes the groundswell is as sneaky as a pyramid scheme. Many brands offer ambassador programs that are more transparent, but still very effective because customers aspire to be like the ambassadors they look up to. One great example of a brand like this is Gymshark. Their athlete reps are all attractive, enthusiastic, and active on social media. The Gymshark Instagram page is so successful because their photos are so recognizable. According to their chief creative officer, the photos work well because of their "unique photography style, almost over-exposing pictures to create a really ‘aspirational’ look, drawing particular attention to the athlete and our product".
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Hey Anna,
ReplyDeleteI always see people discussing and poking fun at pyramid schemes online, but I was never positive on what exactly they were or how they worked. You're so right that its success is rooted in its utilization of the groundswell- without it, these pyramid schemes/businesses wouldn't be able to survive. It's interesting that they generate customers through the groundswell, but it's also how they directly get their ambassadors and/or employees. I feel like many businesses often use the groundswell work harder to gain customers over employees, but that has definitely evolved over the years and recruitment seems to be a target for many companies. online.
Hi Anna, this is a very interesting blog; I have experienced this scheme before its very effective. When it comes to social media influencers, I usually see many vlogs by them appreciating the product and encouraging their fanbase to use the product. It gets tempting when more people start to talk about the product, and ultimately even we buy it, this is only possible because of the groundswell.
ReplyDeleteHi Anna,
ReplyDeleteThank you for sharing. As you said pyramid scheme through one person on social media to convey their products in all directions, everyone is the voice. When enterprises learn pyramid scheme and groundswell, they can survive in the fierce competition.