Network Effects are a virtuous circle - the gift that keeps giving.
And in my opinion, Network Effects are the most valuable and most defensible competitive moat a company can develop.
Network Effects come in different flavors. And not all are created equal.
As such, there’s an art and a science in identifying which you should put your resources towards trying to harness. Some take capital, some take content, and all require users.
This week we’ll dive into the subtle differences that define these flywheels:
Physical Network Effects
Direct Network Effects
Two Sided Network Effects
Local Network Effects
Indirect Network Effects
Hub and Spoke Network Effects
Data Network Effects
Belief Network Effects
Tech Performance Network Effects
Asymptotic Network Effects
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