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AppSumo's Early Success
- Andrew Chen played a major role in AppSumo's success, changing their strategy from bundles to deals.
- He invested $100,000 in AppSumo after one of his companies was acquired by Skype.
Network Effects Power Success
- Network effects are a core secret of Silicon Valley's success, powering multi-billion dollar companies.
- Products with network effects become more useful as more users join, like Instagram or Slack.
The Power of Network Effects
- Network effects make a product more useful with more users.
- AppSumo, marketplaces, social products, and collaboration tools all rely on this principle.