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
Jack Bogle: Beware of This One Mistake 99% of Investors Make
At least start off. I mean, I’d say start off an index fund period. And for five years, don’t do anything else and then look around and see what’s happened in the five years. See how it felt when the market dropped fifty percent. See how it felt when it c…
Solar Eclipse 101 | National Geographic
[Narrator] A solar eclipse happens when a new moon moves between the Earth and the sun, blocking some or all of the sun’s rays from reaching the Earth. By cosmic chance, even though the sun is 400 times wider than the moon, it’s also 400 times farther awa…
RECESSION ALERT: The FED Just Crashed The Stock Market
Welp, I thought this is going to be a normal day. As I woke up, opened my computer, took a sip of coffee, expected to get more recommendations on Johnny Depp’s trial, and was immediately hit by the headline: GDP fell by 1.4 percent, leading to the concern…
How AI, Like ChatGPT, *Really* Learns
The main video is talking about a genetic breeding model of how to make machines learn. This method is simpler to explain or just show. Here is a machine learning to walk, or play Mario, or jump really high. A genetic code is an older code, but it still c…
Michael Burry Just SHORTED Tesla Stock!
[Music] Hey guys, welcome back to the channel! Got an exciting bit of news to talk about today. Um, controversial, definitely controversial. Michael Burry is shorting Tesla stock. So, Michael Burry, you guys probably know him from “The Big Short.” He’s …
We Can Have Explanations That Reach the Entire Universe
David Deutsch presents at the beginning of The Fabric of Reality this idea that you don’t need to know absolutely every single fact that needs to be known in order to understand fundamentally everything that can be understood. He was presenting this visio…