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Sustainable Growth Through Network Effects by Mind Map: Sustainable Growth Through
Network Effects
5.0 stars - 3 reviews range from 0 to 5

Sustainable Growth Through Network Effects

James Currier, Managing Partner at NFX Guild


What are network effects?

Every user adds value for the other users

Product examples: FB, ebay, paypal, linkedin, airbnb, etc.

They're NOT viral effects

The new users directly influence the amount of active users

Your products must have defensibility




Network effects

Using network effects in your business

1. Have a core network effect

Does user #2 make it better for #1? Does the #1000th?

If your products doesn't already have network effect, stop and rethink your product with network effects at its core

2. Network effect product design

Build new features with the network effects in mind

Referral systems

11 different network effects

1. Personal utility

2. Personal

3. Direct

4. Market network

5. 2-sided marketplace

6. 2-sided platform

7. Asymptotic marketplace

8. Data

9. Tech performance

10. Bandwagon

11. Language