Anu Hariharan: How to think about network effects for your startup, from the beginning
Pattern Breakers
The Benefits of Network Effects
Amazon's original business has economies of scale. Amazon gets more booksellers to adopt their platform, they can offer books for cheaper. It's almost like the same advantage as of having a massive factory or massive distribution. And then you've got virality. The most actual people more often than not confuse virality with network effects. Virality means there's massive adoption, rapid growth without spending anything for acquisition of users.
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