Understanding the network effect

The network effect is about the idea of a product or service working better when more people use it. This effect has become prominent in the last 20 years and has shaped the world we live in today. It means that sharing about a financial advisor or a doctor does not necessarily improve one's life, but if someone shares about using a social network and invites others to join, it has the potential to enhance their life. This concept has led to the building of communities and the use of technology and tools to create circles of people who are willing to pay to be a part of the network, benefiting both the members and the organizer.