A note from Daniel

how do you tell if a product has a network effect, and, if yes, how strong is it? The questions to ask are simple: First, does the product have a network? Does it connect people with each other, whether for commerce, collaboration, communication, or something else at the core of the experience? And second, does the ability to attract new users, or to become stickier, or to monetize, become even stronger as its network grows larger? Does the user face a Cold Start Problem where retention is low when there's no other users? Note that the answers to these questions aren't binary—generally not yes or no—but rather in shades of gray.

Daniel Cold Start Problem, page 23 · September 1, 2023 Save to shelf
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