Every time I challenge a technical business plan with little or no budget for marketing, I get the answer that they will be using viral marketing, which costs nothing. The founder explains that the product is so buzz-worthy that usage will spread rapidly through word-of-mouth only, meaning people loving it and recommending it to their friends.

First of all, Seth Godin (http://sethgodin.typepad.com/seths_blog/2007/10/is-viral-market.html) pointed out a few years ago that viral marketing does not equal word-of-mouth. His view is that word-of-mouth is an unsolicited consumer action, positive or negative, which usually fades quickly, like a good or bad restaurant review.

Viral marketing is a deliberate marketing action, designed to grow attention at a compound rate, without further stimulus, by word-of-mouth. It usually implies an opportunity to win big, like a lottery, or experience something sensational, like an incredible video or free product.

At any rate,...