Network Effects
by sari and · updated 5mo ago
Network Effects
andrea added 5mo ago
In more physical industries, there are generally diminishing marginal returns: the next acre you plant and next oil well you drill is probably not as productive as the last one—because if it were, you would have done it first! But the next user of a software platform is often more valuable than the previous one, because they increase the size of the network.
- The best software businesses are networks. When every new user that joins makes the network more valuable for the other users, it leads to a sort of accelerating value and growth that is one of the most powerful forces in the world. Nobody can copy the value you provide, because the value isn’t derived from your functionality, it comes from your us... See more
from Roam’s road ahead by Nathan Baschez
sari added 1y ago
- Zoom’s simplicity is a strength when it comes to the company’s ability to grow its network. When the product concept and value is simple to describe, it makes them easier to spread from user to user, much like the “meme” coined by noted biologist Richard Dawkins in one of my favorite books, The Selfish Gene. You can copy and paste a Zoom link—it’s ... See more
from The Cold Start Problem by Andrew Chen by Andrew Chen
sari added 1y ago
Keely Adler added 2y ago
Jay Matthews added 2y ago
Jay Matthews added 2y ago
Status Traps: Learning from Web2 Social Networks - a16z crypto
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Leo Guinan added 2y ago
Tom So added 2y ago
