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
Artificial Intelligence in Space | StarTalk
Actually, this is the time of the show where we go to Cosmic Queries. Let’s start talking Cosmic Queries. Chuck, oh, he’s got him in his pocket! I have them! Look at that! That was so awkward. That was very clumsy, Chu. That was so clumsy! Okay, but I ho…
15 Habits You Need To Stop Doing Immediately
Here’s a hard pill to swallow: we’ve all got 24 hours in a day. So how is it that some manage to find success while others struggle in despair? Well, it all boils down to one thing: habits. Make no mistake, what you do on a daily basis will dictate your d…
Confidence interval for hypothesis test for difference in proportions | AP Statistics | Khan Academy
A university offers a certain course that students can take in person or in an online setting. Teachers of the course were curious if there was a difference in the passing rate between the two settings. Data from a recent semester showed that 80 percent o…
Saving Albatross Chicks From Tsunamis and Rising Seas | National Geographic
The Laysan albatross chicks that we’re raising, they have a lot of personality. When you first look at them, you wouldn’t realize how much variation there is among different birds, but there really is. A feisty one, aren’t you? Yeah, he’s got lots of ener…
Hunting Caribou | Life Below Zero
We had a really tough year this year. The Yukon River is kind of our life blood here, and we no longer have it as an option for getting food. So we’re relying on getting moose, bears, and caribou. We had no luck getting the moose this year. The caribou ha…
What you MUST know about Acorns Investing
What’s the guy’s histogram here? So, okay everybody, I’m listening. You guys have been asking me non-stop to make a video about Acorns investing, and I’ve been ignoring it for quite a long time until today. So here it is! We’re gonna be talking about Acor…