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
Example scaling parabola
Function G can be thought of as a scaled version of f of x equal to x^2. Write the equation for G of x. So like always, pause this video and see if you can do it on your own. All right, now let’s work through this together. So the first thing that we mig…
Warren Buffett: 90 Years of Investment Wisdom Summed Up in 15 Minutes (2021)
Whenever someone asks me how they can learn more about investing, the first thing I tell them is study Warren Buffett. He has an amazing ability to make complicated finance concepts seem so simple. Here are my five favorite clips of Warren Buffett explain…
Why Do We Kiss?
Hey, Vsauce, Michael here. Attachment of two people’s lips kissing. The average person will spend about 20,160 minutes of his or her life kissing. And the world record for the longest, continuous kiss is 58 hours, 35 minutes, and 58 seconds. But why do we…
The Obsession of the Modern World | Origins: The Journey of Humankind
In a society filled with human innovation, one invention stands out above them all: the one that has become the obsession of the modern world—money. Money was not just an intervention; it was a mental revolution and created a system of trust. An elaborate…
Office Hours at Startup School NY 2014
So next up, all right, Gary Tan and I are going to do onstage office hours. This is most of what happens during Y.C. The partners meet individually with startups, and we give them advice about whatever problems they’re facing. It’s usually 25 minutes per …
Saving Cabins in the Arctic | Life Below Zero
I’m learning new country this winter, so my greatest challenge is don’t let the land or the weather kill me. The water is cold; you feel get used to it after a while. This is a big chunk of ice. Rico and Skyler have traveled to the Celawat hot springs wit…