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
Fractional powers differentiation | Derivative rules | AP Calculus AB | Khan Academy
So we have ( H(x) ) is equal to ( 5x^{1⁄4} + 7 ) and we want to find what is ( H’ ) of 16, or what is the derivative of this function when ( x ) is equal to 16. And like always, pause this video and see if you can figure it out on your own. All right, w…
Married for 88 Years, This Couple Shares Their Secrets to Love | Short Film Showcase
[Music] Episode of Hustle and Athena Rocket. Allah Captain Miranov Qatari long, that’s an understanding in the future. [Music] There is any, yeah, I want a coffee date. Efficient without my dad is under Nate with the grace of God, and Mohammed said in on…
See How This Avalanche Rescue Dog Is Enjoying Her Retirement | Short Film Showcase
[Music] This guy is an Australian Shepherd. We got her at eight weeks old with the purpose in mind of turning her into a search-and-rescue dog. A search-and-rescue dog, especially an avalanche rescue dog, is a dog that’s trained to find human scent that c…
What is Beautiful Deleveraging?
A number of people asked me, “What is a beautiful deleveraging?” Well, first let me start with what is the deleveraging. Sometimes there’s too much debt burden, which also means that somebody’s holding too many debt assets and they’re not going to get pai…
Destruction - Mind Field (Ep 3)
[Music] We live in a universe where statistically disorder is king. As time moves forward, things fall apart, stars burn out, energy spreads out, entropy conquers all. But humans, life fights that trend. We build things, we organize things, we add informa…
What you MUST KNOW about Robinhood Investing
What’s the guys? It’s Graham here. Now, normally I would never make two Robin Hood videos like this back-to-back, but I gotta say, this entire event has been extremely mind-boggling. There have been some new events that have just come up over the last day…