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
JEFF VS. ADAM: Nerd Wars!
It’s a nerd force! Oh good, what style are we doing it now? Alright, so welcome to Nerds War. There’s a very special Nerds War. We didn’t prep because I sliced my finger—[ __ ] oh um, so we’re doing a Nerds War extreme! Adam vs. Jeff! Said, I’m playing A…
Why Are You Alive – Life, Energy & ATP
At this very second, you are on a narrow ledge between life and death. You probably don’t feel it, but there’s an incredible amount of activity going on inside you, and this activity can never stop. Picture yourself as a Slinky falling down an escalator m…
YC SUS: Kat Mañalac and Eric Migicovsky discuss Week 2 SUS Lectures
Good morning everyone, and good evening. It could be anywhere actually. I’d like to start somewhere. My name is Eric, and I’m the facilitator, of course, facilitator here at Startup School. It’s a pleasure to be joined by Kat. “Hi everyone, I’m Kat, a pa…
The Apple Vision Pro Was Always Doomed to Fail
Imagine you just spent $4,000 on an Apple Vision Pro. You excitedly bring it home and set it down on your coffee table. As you open the premium-feeling Apple packaging, the smell of the fresh plastic and metal fills you with a familiar joy. You strap on …
Female Founders Conference - New York
[Applause] [Applause] [Applause] [Applause] [Applause] [Music] [Applause] Okay, let’s see here. Hi, hi everyone! Good afternoon! I think we’ll get started. You’re nice and cool inside, thank goodness. I lived in New York more than 20 years ago at this poi…
Recognizing quadratic factor methods part 2
In the last video, we looked at three different examples. It really is a bit of a review of some of our factoring techniques and also to appreciate when we might want to apply them. We saw in the first example that it was just a process of recognizing a …