With network effects, even if you're 3% better than alternatives, over time those compound into aggregation effects.

· Bits and Bobs 8/4/25
  • With network effects, even if you're 3% better than alternatives, over time those compound into aggregation effects.
    • The compounding effect is more important than the rate.
    • It doesn't matter what the rate of improvement is, compounding rates pull away from all alternatives.
    • This is true as long as it's a low switch cost environment.

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