Viral Effects Are Not Network Effects

For products seeking virality, also having a network effects approach to the product is useful because it makes it easier to create viral language hooks using words like “share”, “get”, and “see” that aren’t as easy to build into non-network effects products.

Network effects are about adding value and defensibility to your product. A network effect is when every customer of your product adds incremental value to all the other customers of your product so that it becomes difficult for customers to find any alternative product which gives them as much value.

The Relationship Between Viral Effects and Network Effects

The thinking behind building network effects is less about emotion and more about the math for customers around getting value — utility. Giving the customer more value out of your product by getting your other customers to put value in it. Customers are not even usually aware that they are doing mental math around the value they are getting from ne... See more

Playbooks for creating viral products

1.  Novelty/Entertainment


2. Instrumented

The Future of Virality and Network Effects With viral effects there are seasons to it, depending on the channels and technologies you have available. Going viral today is more difficult than it was during the 2000-2012 Golden Age because most platforms have become saturated with the same viral strategies that worked early on...Virality has therefor... See more

...we learned how much less important viral effects are to long-term value creation than defensibilies like network effects.While viral effects are a useful attribute of products to reduce the expense of acquiring new users, network effects remain the key driver of value creation for startups in the digital age by keeping people using them.

Viral effects are about growth of new users. Viral effects are when you get your existing customers to get you more new customers, ideally for free.

To develop great virality you must be focused on language. Language is the rails on which products are shared, so you must play with language, experiment with it, and build the product around the language.