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
Top 5 Stocks the “Super Investors” Are Buying in 2022 | Stocks to buy (2022)
There’s an old saying that goes like this: imitation is the sincerest form of flattery. This, for sure, applies to investing. Legendary investor Monish Pabrai puts it a little more direct: he says that there is no shame in getting your investment ideas fr…
Policy and the branches of government | AP US Government and Politics | Khan Academy
As we’ve discussed in other videos, the federal bureaucracy is a huge part of the US government, sometimes even called the fourth branch. It has more than two million employees who work in various agencies dedicated to implementing the law. So, the bureau…
Pros and Cons of Stocks vs Real Estate: Is one better than the other?
What’s up you guys? It’s Graham here. This is a question I get asked a lot: Is it better to invest your money in the stock market or put your money in real estate? This is a topic that people get so opinionated over. Some people, they love the ease and th…
Life's Biggest Paradoxes
In life, anything is possible because we can never fully understand how the world works, and the laws of physics prevent us from being able to tell the future. Everything we predict is a probability; some are a lot more probable, others are less probable,…
Sam Altman : How to Build the Future
I’m Jack, Sam’s brother, and we are here in our backyard, where we also live with our other brother. Sam wanted to give some advice about how to have an impact on the world, and since you couldn’t interview him himself, here I am. So, Sam, thank you. Th…
Safari Live - Day 272 | National Geographic
This program features live coverage of an African safari and may include animal kills and carcasses. Viewer discretion is advised. Good afternoon everybody and welcome to a stormy, blustery, windy Masai Mara. We’ve had a massive storm that has just blown…