Saved by Bryant Wu
Breaking Down Network Effects
To make it concrete enough for product teams to act upon, I argue that there are a trio of network effects: Engagement, Acquisition, and Economics.
Andrew Chen • The Cold Start Problem: How to Start and Scale Network Effects
One important lesson here is that engagement matters to network effects. A first level understanding of network effects is that they occur when more users = more value for existing users. That’s true, but go one level deeper, and you realize it’s actually the amount of usage that matters.
James Currier • Does Real Identity Matter for Networks?
The Escape Velocity stage is all about working furiously to strengthen network effects and to sustain growth. This is where the classical definition of a “network effect” is wrong. I redefine it so that it’s not one singular effect, but rather, three distinct, underlying forces: the Acquisition Effect, which lets products tap into the network to dr
... See moreAndrew Chen • The Cold Start Problem: How to Start and Scale Network Effects
The “effect” part of the network effect describes how value increases as more people start using the product. Sometimes the increasing value manifests as higher engagement, or faster growth.
Andrew Chen • The Cold Start Problem: Using Network Effects to Scale Your Product
Network effects are defined as when the value of a company’s product or service increases as usage increases.That means the more users you have, the happier they are, and the cheaper it is to acquire new ones, which means your growth accelerates. Accelerating growth means exponential growth. You want to invest in and work at businesses that grow ex... See more
Uncharted Territories • Platforms and Aggregators
“The Economic Effect.” Network effects can help improve business models over time, in the form of improved feed algorithms, increased conversion rates, premium pricing, and more.