Also referred to as “large network of engaged users”, the network effect is the outcome resulting from the inherent value of the peer to peer interactions between the members of the network.
- William Mougayar warns about not waiting too long to monetize a large network of engaged users, and it’s best to experiment while you’re still growing, in Don’t Confuse Growth with Success, and Don’t Delay the Revenue Model.
- In The Curse of Network Effect, Nir Eyal outlines the conditions for which a Network Effect would have viable business model.
- Brian Balfour explains the nuances and various approaches,- Achieving The Network Effect: Solving The Chicken Or The Egg.
- Josh Elman is adamant that “How will they make money” is the wrong question to ask when building large networks of users.
- The Gold Standard for explaining the theory of Large Networks of Engaged Users is the Union Square Ventures Investment Thesis, as described by Andy Weissman.
- In Networks and the Enterprise, Fred Wilson says that enterprise users are also part of these large networks.
- Sangeet Choudary writes about platforms and network effects, e.g., the impact or reverse network effects on social media. (TE)