Ep. 2 - The Underlying Properties Of Network Theory (NFX Masterclass)
The NFX Podcast
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Network Effects Are Not Viral Effects
In an Uber example, I can give you my card in the back seat and then the next time you want to ride to the airport, you just call me direct. Or if I'm a big enough buyer on Amazon Marketplace, you eventually get my phone number and you just start shipping me stuff directly. So that's disintermediation. There's lots of ways of solving this. Now, a couple things to first know. Network effects are not viral effects and most people mistake this. Viral effects are word in your existing users, gets you new users for free. That's not what we're talking about. Network Effects are about retention. And the defensibility is what ultimately
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