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
POV "Kittycam" Reveals These Stray Cats Prey on More Than Birds | National Geographic
[Music] When people see a feral cat on the side of the road, they’re thinking this is akin to my cat being out there in the wild with no food, exposed to the elements, and they have a lot of compassion to want to help them. But people don’t always see tha…
The REALISTIC Millionaire Investing Advice In Your 20s
What’s up, guys? It’s Graham here. So, some of you know I just recently turned 30 years old, and looking back, my 20s have been absolutely by far the most transformative years of my entire life. Not only in terms of investing my money and building my wea…
How To Build Generative AI Models Like OpenAI's Sora
A lot of the Sci-Fi stuff is actually now becoming possible. What happens when you have a model that’s able of simulating real world physics? Wouldn’t it be cool if this podcast were actually an Infinity AI video? One thing I noticed is that, like, the li…
Ladder to the Stars | Cosmos: Possible Worlds
I’m standing on the southern tip of Africa and imagining what it was like sometime in the last hundreds of thousands of years. Back then, Africa was home to all the world’s Homo sapiens, all 10,000 of them. If you were an extraterrestrial on a survey miss…
Sky Sharks: Shark Surveillance | SharkFest | National Geographic
[MUSIC PLAYING] NARRATOR: Great whites grow up to 20 feet long and can pack over 5,000 pounds of muscle. [MUSIC PLAYING] Yet, despite their size, they often go unnoticed. A type of camouflage known as counter shading gives these sharks the predatory edge…
Why Are there Holes in the James Webb Sunshield? (Explained by My Dad) - Smarter Every Day 270
Hey, it’s me, Destin. Welcome back to Smarter Every Day. We are on the way to my dad’s work, and everything about this is weird. I have been trying to interview my own father for two years now at his work. The reason it’s so difficult is because he has a …