Saved by Jay Matthews
All about Network Effects
Another unique thing about virality is that it comes and goes over time depending on the channels available. These viral channels are constantly in flux. Not true with network effects, which are more stable over time.
James Currier • Viral Effects Are Not Network Effects
So if we want to understand why network effects often fail to lead to marketplace monopolies, we should start by considering the Thumbtacks against the Taskrabbits, the Tinders against the Bumbles, and the Upworks against the Fiverrs, all in relentless competition against mirror-image services. These services all have network effects in the traditi... See more
David Phelps • The promised land of the singing frog
PayPal’s early days are a perfect example of the Acquisition network effect, which utilizes the participants of a network to acquire new users—and the bigger the network, the better it works.
Andrew Chen • The Cold Start Problem: How to Start and Scale Network Effects
Although this entire phenomenon is often called market saturation, in a networked product there’s actually something more subtle going on. I think of it as network saturation, not just market saturation. Here’s how I define this term: the 100th connection for any given participant is likely less impactful than the first few, and as the network gets
... See more