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
Homeroom with Sal & Linda Darling-Hammond - Thursday, August 20
Hi everyone, Sal here from Khan Academy. Welcome to our homeroom live stream. I’m very excited about the conversation we’re going to have with Linda Darling-Hammond. Before we jump into that, I’ll give my standard announcements first. A reminder that Kha…
Japanese Imperialism | World History | Khan Academy
What we’re going to discuss in this video is the evolution of Japan from being one of the most isolated countries in the world during the Tokugawa Shogunate to being the first Asian country to truly industrialize and become a world power. Historians will …
RFS: LLMs for manual back office processes in legacy enterprises
One thing I’d love to see more startups working on is the use of LLMs to automate complex back office processes in large enterprises. So, for example, in a bank, you might have a customer service team answering loads and loads of queries from customers. …
Warren Buffett Made Me a Millionaire at 26 | Here's How
Imagine waking up one day, checking your bank account, and realizing you’re a millionaire at 26. Sounds like a dream, right? Well, it wasn’t luck, a lottery win, or some secret family trust fund. It was the result of one man’s wisdom: Warren Buffett. In t…
Miyamoto Musashi | The Way of the Ronin (Dokkodo)
The Japanese word ‘rōnin’ describes a samurai without a master, who wanders alone. The status of a ronin varied across different time-periods. In a general sense, being a ronin implied failure. More specifically, a ronin had renounced the act of ‘seppuku’…
SURPRISE VLOG: Las Vegas
Okay, enough of that. This is not going to be a cinematic vlog here; I’m just showing you what I’ve been up to lately and right now. I need to get from London to Las Vegas and back again in 72 hours. This is guaranteed to be a jet lag disaster. But I have…