Dropbox Comes Correct*

* DeLorean not included.

If your workflow requires shuffling files between two or more computers, then you are well aware of how difficult it can be to manage that process. It’s inevitable that one day you’ll forget to sync your work from home, only to realize your mistake when the client arrives for a design review. Even worse, you overwrite today’s work with yesterday’s file, then spend the rest of the night repeating your efforts. Yippee!

My current solution involves Chronosync and an iPod, which is very effective, but still susceptible to user error (I’ve forgotten the iPod at home, or at the office, numerous times). Recently I discovered Dropbox, which is perhaps the most elegant solution I’ve come across for syncing files on various computers. The service is web-based, but tightly integrated with the operating system, creating a seamless experience. Simply drop files onto a folder and voila, they are now available on your other Dropbox enabled computers, as well as the web.

There are numerous things that Dropbox does right. They clearly explain what they provide and the benefits of using their software. The design aesthetic reflects the product’s simplicity and elegance. They eliminate risk by providing the software free of charge. The product is truly top-notch, but it’s a marketing twist they’ve integrated into the service that got my attention.

The Dropbox business model is based on a Freemium structure. The software is available for download, free of charge, but basic accounts are limited by storage capacity. Typically, users who wish to increase their service level may do so by paying a monthly fee, and Dropbox is no different, offering two account upgrade options, at $9.99 and $19.99 per month. However (this is where marketing savvy comes into play), there is an additional method for increasing your storage capacity that is not for sale. Instead, it requires a bit of social capital, in the form of a referral.

Affiliate rewards are a popular incentive, but typically these are monetary, in the form of a one-time kickback or percentage of future income. Dreamhost uses this system for hosting referrals, Shopify provides a percentage of future sales, and entire businesses have been built around Amazon’s Associates program. What’s genius about Dropbox’s system is that it utilizes the service itself as the reward. Get your friends to register with Dropbox, and we’ll reward you with more storage!

Currently there is a limit to the referral bonus (3 GB, or 12 referrals at 250 MB per referral), but that could easily be lifted to generate more buzz if necessary. Furthermore, these referrals are generated organically, facilitated by individual users, and propagated through existing social networks. It’s one thing to have Dropbox boast about itself, quite another to have your peer do it for them. After all, that’s how I discovered it.