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
15 Powerful Mindsets Travel Unlocks
Did you travel to relax? Did you travel to visit? Did you travel to explore? Did you travel to get away from your current reality and pretend you’re someone else on the other side of the world, hoping to fall in love with a stranger? Well, successful peo…
5 Millionaire HABITS You Can COPY FOR SUCCESS | Kevin O'Leary
Hi there. As is usually the case, this week’s episode of Ask Mr. Wonderful was inspired by a question. This one from Zoe—really intriguing, loved that name by the way. Zoe writes, “I watched your Ask Mr. Wonderful episode when you explained how you made …
The New Stock Market World Order Has Begun | Recession Warning
What’s up, guys? You here? And, uh, well, this escalated quickly. In the span of one month, mortgage rates have climbed to their highest level in a decade. Morgan Stanley warns that a bear market rally is setting the stage for a correction, with even more…
Growing Greens (Deleted Scene) | Life Below Zero
[Music] [Music] Well, I’m about out of water for water in my greenhouse, so I got to pump some water up from the river to fill up my tank. I go through a lot of water on hot sunny days. If I have a hot week, I’ll go through almost two of these tanks in on…
Population diversity and resilience | Natural selection | AP Biology | Khan Academy
So let’s imagine that each of these little circles here represent a member of a population of bugs. We have two different populations of bugs. You could view this as population 1 on the left side of this orange line and population 2 on the right side of t…
Raven Intelligence | Logan the Raven Learns a New Trick | Magic of Disney's Animal Kingdom
In the land of Asia. Welcome to Feathered Friends and Flight. My name is Corey. And I’m Katie. All right, Logan, are you ready? Okay, here we go. You got this? Logan the raven gets ready for his big performance. He comes out, and it’s the opening of the…