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The Cold Start Problem by Andrew Chen
Before we dive in, let’s revisit the cold start problem — a well-known challenge for products with network effects (or “networks”), including Snapchat or Airbnb. On these products, the addition of a user makes the product more useful for all users. But on day 0, they have no users and, therefore, no utility to offer new users. This forces them to f... See more
Sameer Singh • Bootstrapping Web3 Networks: The Limitations of Token Incentives
Alex Wittenberg added
Because of the Engagement network effect, the networked products used as case studies in The Cold Start Problem see some of the highest retention curves in the industry—it is a core part of their success. Their unique ability to tap into the Engagement network effect lets them drive up retention over time—first, by creating new use cases as the net
... See moreAndrew Chen • The Cold Start Problem: How to Start and Scale Network Effects
TJ and added
Networked products, on the other hand, have the unique capability to reactivate these users by enlisting active users to bring them back.
Andrew Chen • The Cold Start Problem: How to Start and Scale Network Effects
The reality is that new products are often greeted by a nice initial spike of users, but this falls to a trickle as the novelty wears off. Maybe there’s another push, which again goes nowhere. People won’t use their product unless their friends are on it. Features are feverishly added, marketing efforts are redoubled, but the network never gets off
... See moreAndrew Chen • The Cold Start Problem: How to Start and Scale Network Effects
Solving the Cold Start Problem requires getting all the right users and content on the same network at the same time—which is difficult to execute in a launch.
Andrew Chen • The Cold Start Problem: How to Start and Scale Network Effects
First, does the product have a network? Does it connect people with each other, whether for commerce, collaboration, communication, or something else at the core of the experience? And second, does the ability to attract new users, or to become stickier, or to monetize, become even stronger as its network grows larger? Does