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
Building for the Enterprise with Aaron Levie (How to Start a Startup 2014: Lecture 12)
Can we keep playing with they? Okay, good! We turn up a little bit so it’s more pump up. Okay, here we go! [Applause] Okay, I guess we got to clap, we got to find the beat, and then we got to clap to the beat. Okay, all [Music] right, okay, that’s pretty…
American Empire
The United States is, shockingly, a bunch of states that are united. It was just 13 to start with, but as time marched on, the border marked west, bringing us to today and the 48 contiguous states plus Alaska and Hawaii. They’re usually drawn in these lit…
Warren Buffett's GENIUS Options Strategy... (The Wheel w/ @PetersonCapitalManagement)
2020 is shaping up to be a record year for stock options. Options are the kinds of bets where you can lose everything. Options are riskier than stocks. I’d wake up to 20, 30, 40, even a 60,000 loss. Options activity hit a record high in 2021. Individuals …
Digital Aristotle: Thoughts on the Future of Education
Hello Internet, Recently YouTube invited me to California for a conference with a bunch of really interesting people. There were many talks and giant balloons and much discussion of what the future of education might look like — which is no small issue b…
Confucius | The Art of Becoming Better (Self-Cultivation)
Isn’t it the case we should always stay true to ourselves? Which means that we ought to know who we are and organize our lives in ways that are compatible with our personalities? When we look for a partner, for example, we look for someone that we’re comp…
Why I Sold My Tesla Stock ...
What’s up you guys, it’s Graham here. So, I rarely ever post videos like this on a Tuesday, and I promise this is going to be my last Tesla video for a little while. But given the recent and unprecedented price surge of Tesla stock over the last few days,…