Anti-Network Effects

The Escape Velocity stage is all about working furiously to strengthen network effects and to sustain growth. This is where the classical definition of a “network effect” is wrong. I redefine it so that it’s not one singular effect, but rather, three distinct, underlying forces: the Acquisition Effect, which lets products tap into the network to dr

the “atomic network” is the smallest network needed that can stand on its own. It needs to have enough density and stability to break through early anti-network effects, and ultimately grow on its own. I liken it to an atom because it is the unit upon which larger networks are ultimately built. If you can build one, and then another, you can build

To figure out a response, it’s important to acknowledge a common myth about defensibility and moats: that somehow, network effects will magically help you fend off competition.

First, I start with the principal dilemma, which I call “Anti-Network Effects.” It’s a myth that network effects are all powerful and positive forces—quite the opposite. Small, sub-scale networks naturally want to self-destruct, because when people show up to a product and none of their friends or coworkers are using it, they will naturally leave.