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
Homeroom with Sal & Randi Weingarten - Tuesday, August 4
Uh hi everyone, welcome to our homeroom live stream. Sal Khan here from Khan Academy. I’m very excited about the very relevant guest we have today, Randy Weingarten, president of the American Federation of Teachers. Before we jump into that conversation, …
Dord.
Hey, Vsauce. Michael here. In 1934, Webster’s dictionary gave birth to a new word by mistake. Their chemistry editor, Austin N. Paterson, submitted a simple entry: “D or D abbreviation for density.” Nothing wrong with that, but the entry was misread, and …
TRUMP JUST STORMED WALL STREET
What’s up, grab it’s guys here. So, normally I don’t make videos like this, and I tend to stay away from anything involving politics. But today we gotta talk about one of the most requested topics of investing that stands to make or lose people a lot of m…
The Housing Market Is Getting Destroyed
What’s up you guys, it’s Graham here, and if you thought the housing market was completely backwards a month ago, just wait, because today things are about to get a whole lot more confusing. With the entire housing market now predicted to climb another 7%…
Everything you need to know about being a Real Estate Agent: The Real Estate Agent Academy
What’s up you guys, it’s Grant here. So, I put a lot of time, effort, and thought into making this video, and it would mean the world to me if you guys give it the chance to watch it all the way through. Plus, if you’re interested in becoming a real esta…
15 Things That Impress People More Than Money
You know, people say, look how poor someone is. All they have is money, and that’s bullshit. And you know what? Okay, anyone who needs money right now come back or sup. We humans want money for three distinct reasons. One, to stop the pain we can elimina…