yego.me
💡 Stop wasting time. Read Youtube instead of watch. Download Chrome Extension

Virality and network effects drive organic growth.


less than 1m read
·Nov 3, 2024

The best consumer companies incorporate both virality and network effect, which are different concepts but very closely related, in order to grow their user base organically.

Virality is the idea that one user using your product introduces it to other users somehow in the use of your product, whereas network effect is the idea that the product gets better the more nodes in the network exist.

I'll give you an example from Facebook's early days. So, when you took a picture on Facebook and uploaded it, you were prompted to tag your friends, even if they weren't already on Facebook. Those friends would get an email saying, "Hey, someone's tagged a photo of you; sign up to view the photo." That's a viral mechanic.

By uploading the photo and tagging your friends, you spread it to new users. A network effect comes from Metcalfe's Law: the value of the network is the square of the nodes in a network.

What that basically means is the more people who use this thing, the more valuable it gets. So, WhatsApp is a great example of this.

More Articles

View All
Shower Thoughts: Paradoxes That Will Change Your Life
As light travels through space, it behaves like a wave, but light is also made of tiny particles called photons. This is the paradox of wave-particles, and it has completely revolutionized modern physics. The universe is filled with intriguing paradoxes l…
Top 5 Stocks the Smart Money Is Buying Now!
All right, you guys know the story. It’s now been more than 45 days since the end of Q3; thus, the 13F filings are out. So in this video, we’re going to take a look at the five most bought stocks by our super investor friends for Q3 of 2022, a quarter tha…
How To Unmask The Narcissist's Double Life | STOICISM
Have you ever felt like someone could see right through you, tapping into your deepest fears and desires, and manipulating them to their own advantage? Imagine living in a world where your very emotions are the plaything of a master illusionist, someone w…
Empty Space is NOT Empty
One of the most amazing things about atoms is that they’re mainly empty space. If an atom were as wide as your arm span, then the electrons would all be whizzing about inside the volume enclosed by your fingertips. Meanwhile, the nucleus would be sitting …
Who is Manipulating Facebook? - Smarter Every Day 215
Facebook is a great way to connect. People plan events there; you can sell things. People tell me that if they advertise on Facebook, they actually get more business. But any time you combine two billion people in one location, people are going to try to …
The Changing World Order Has Just Begun | How To Prepare
What’s up, guys? It’s Graham here. So throughout the last week, there’s been a new topic gaining a lot of attention with over two and a half million views over these last few days. It has to do with the video posted by Ray Dalio titled Principles for Dea…