Network Effects in SaaS : A Desired Moat (Part 1 of 3)
“The Engagement Effect” is what happens when a product gets stickier, and more engaging, as more users join. This is the closest to the classic definition of the network effect, as defined by Theodore Vail of AT&T.
Andrew Chen • The Cold Start Problem: How to Start and Scale Network Effects
Integrations (Network Effect) Network effect is when the value of a product or service increases because of the number of users in the network. A network of one telephone isn’t useful. Add a second telephone, and you can call each other. But add a hundred telephones, and the network is suddenly quite valuable.
Rob Walling • The SaaS Playbook: Build a Multimillion-Dollar Startup Without Venture Capital
Networks become more valuable as more people use them, but potential users first need to learn how to use them. By rewarding users to go through the process of becoming informed, the networks get user acquisition, which enhances value, while the users learn a new skill and earn ownership in the protocol for doing so. It’s a win-win for both parties... See more
Collaborative Fund • The Future of Work
