Pattern Breakers Anu Hariharan: How to think about network effects for your startup, from the beginning
15 snips
May 3, 2021 AI Snips
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Network Effects Defined
- Network effects increase a service's value as more users join.
- This can lead to winner-take-all markets, high margins, and pricing power.
Designing Network Effects
- Founders should identify a core utility for their product, like Facebook's initial use as a class directory.
- Focus on expanding the network strategically, considering connections between clusters.
Facebook's Retention Focus
- Facebook prioritized retention, tracking daily logins as a key metric, not just growth.
- They used a "Smile Curve" to visualize user engagement and identify features to boost daily usage.