Network effects dominate everything else.
Nothing linear matters next to a compounding force, in the fullness of time.
From other episodes
- Social networks, like all network-based software, have very little competition on a feature-by-feature basis.2026-10-12
- OpenAI allowing people to use their Codex subscription is a cunning strategy.2026-10-05
- Using modern tech feels like living in a digital company town.2026-10-05
- Network effects in software are downstream of the silo model of today's physics of trust.2026-09-28
- Things like phone lines are regulated because they are natural monopolies.2026-09-28
- Network effects run in proportion to the user value minus the switch cost.2026-06-15
- The YC playbook is about having a 6 month monopoly on a corner of PMF.2026-05-26
- There's never a good time to decentralize.2026-04-27