Network effects are emergent value.
Network effects are emergent value. If you cut an ecosystem into separate parts, the overall value goes down super-linearly. [br]
Topic: network effect
66 chunks · 46 episodes
Topic summary
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A short read on the topic's time range, peak episode, and strongest associations. Use it as the quick orientation before drilling into examples.
- network effect appears in 66 chunks across 46 episodes, from 2023-10-02 to 2026-03-09.
- Its densest episode is Bits and Bobs 4/8/24 (2024-04-08), with 3 observations on this topic.
- Semantically it travels with compounding value, schelling point, and Google, while by chunk count it sits between schelling point and infinite software; its yearly rank moved from #6 in 2023 to #111 in 2026.
Over time
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Raw mentions over time. Use this to see absolute attention, not relative rank among all topics.
Observations
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The primary evidence view for this topic. Sort it chronologically when you want concrete examples behind the larger pattern.
If you're making a consumer product you have to demonstrate network effects.
If you're making a consumer product you have to demonstrate network effects. That's a multi-step process. If you're doing a product for enthusiasts in a category that already exists, you just have to show your thing is bette...
In terms of market dynamics, AI is more like microprocessors than the internet.
...arket dynamics, AI is more like microprocessors than the internet. There are no network effects, but there is utility for the very first user.
Aggregator is just a polite word for a peculiar form of monopoly.
...y surplus created declines. Aggregators are better than most monopolies because network effects mean the products are better than competitors'. But that's more due to the inherent network effect than the value created by the aggregator. But the...
AI is not a goldrush, it's a landrush.
...ry hardy ones were left, and they could them dominate the empty territory. With network effects, it's an order of magnitude easier to grab virgin territory than take territory from someone else.
Workflows are hard to change because there's an intra and inter network effect.
Workflows are hard to change because there's an intra and inter network effect. Inter: You need to coordinate with others. If you change the workflow but others participate in it and don't change, then you can't change it. Intra...
Data is not like oil, but sand.
...users and for collections of users. This is why the aggregators have such large network effects. Via Ben Evans, from an idea by Tim O'Reilly.
Web 2.0 accidentally gave us extremely powerful aggregators.
Web 2.0 accidentally gave us extremely powerful aggregators. Before that, network effects were mainly individual. But Web 2.0 was about leaning into the ability of the cloud to be networks.
You can't start a network effect on a base with only bonus value.
You can't start a network effect on a base with only bonus value. It needs to start from a nugget of primary value. Single-player value must come before multi-player value.
Your decision to use a product with network effects is not individual.
Your decision to use a product with network effects is not individual. Network effects make it impossible to vote with your feet. Where else are you going to go? You individually don't have a choice.
The staying power of apps makes them not responsive to individual user needs.
...use it." The decision is too coarse grained to steer it on smaller details. The network effects dominate the individual use cases. So everyone is stuck using the one-size-fits-none option. Same thing for a two party system, except with two opti...
AOL could ramp up its network effect faster than the open web in the early 90's.
AOL could ramp up its network effect faster than the open web in the early 90's. AOL was a single-sided network effect. Email, chat and IM grow in value with any user that joins. The ope...
All network effects have to be bonuses, not the primary use case.
All network effects have to be bonuses, not the primary use case. You don't come for the bonus, you stay for the bonus. A single-user use case has to be the primary use...
With network effects, even if you're 3% better than alternatives, over time those compound into aggregation effects.
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 ra...
Lots of products only work once you have a couple of eager collaborators.
...ti-player systems off the ground, useful even with one human in it. This allows network effects of collaboration to boot up faster. Google Wave wasn't wrong, it was just very, very early–and didn't have LLM collaborators. "Google Wave but for y...
Here are a few pithy insights from a presentation I saw from Scott Belsky.
...cheat codes for the best product leaders." "Personalization effects are the new network effects." "Process is the excretion of misalignment." Users feel success in your product with shallow value (no obstacles). They actually succeed with deep ...
ChatGPT maintains a dossier on you that it won't let you see.
...e thinking they're not smart enough." Prompt injection with tools that might do network effects could leak significant facts about you!
In software, consumer contexts often have winner-take-all but B2B rarely does.
... B2B rarely does. Consumer contexts are much lower friction, so aggregation and network effects play out faster. B2B contexts are paid, which require contracts, onboarding, etc: friction. Consumer contexts flow quickly due to typically being fr...
The adoption of a new product has two distinct curves:
...he first curve without the second. Things that demo poorly but have an inherent network effect of quality have the second curve but not the first. Some new products have both, like Google Maps did right when it was first launched. It's easy to ...
What is the magic that makes Wikipedia so antifragile?
...uman intention that has at its core a kind of inherent scarcity and buttressing network effects.