66 chunks · 46 episodes
... Although adjacent categories like Instagram Reels / TikTok exist. Its inherent network effects make it so no one else tries to take it on head on. A super-linear business, powered by an ecosystem.
... using it goes up with the number of other people who already use it. A classic network effect. The more complex it is--the more characters of normative spec text–the more there is to disagree with.[abr] Because the coordination point is an eme...
...nt that pulls in more and more people over time. The boundary gradient can be a network effect, or it can be as simple as a thing that is values aligned, that people want to want.
...her dimensions, so the thing is actually arguably worse than the incumbent. The network effects and internal momentum of an established ecosystem have to be actively overcome with something not just a bit better, but wildly better in some salie...
Bits being easier to transport than atoms means that the first to establish network effects wins. Once they win, they are basically unstoppable as long as they provide a minimum level of quality. It's all about first mover advantage, who's ...
...ets, creating a stronger pull. This advantage can come from: Good old fashioned network effects. Data stickiness. The more data a user stores in the tool, the more useful it gets for them, which also makes their switch cost higher. Data Flywhee...
In a race with network effects if you don't play the red queen race, your competitor won't just edge you out, they will eat you. In a situation without network effects, you might ...
...d queen race for engagement, in a fierce battle with other providers with clear network effects. Step off the treadmill and you will be left in the dust before you know it. The people who are in tune with the algorithm have a mutual co-dependen...
...es both the sender and receiver to be using the same embedding space. A natural network effect for the embedding space; people will tend to use the one that others use, all else equal, to have a better chance of communicating with a partner. Bu...
...ough of a gradient to differentiate yourself. But if your thing has an internal network effect that the other things lack, then over time that network effect will get so much momentum that it obviates everything else. If you have a secret that ...
...r options to be the obvious schelling point. If you can then kick off a private network effect that only benefits you and not the other alternatives, you can extend that lead into an everlasting, self-accelerating one. Aggregators are some of t...
...s, super-linearly. Your product has to have an intrinsic compounding loop (e.g. network effect) that is stronger than the churn loop to beat it over the long haul.
If you're trying to get a network effect going, the worst thing is to get middling traction on a linear thing that you'd then have to retcon the network effect onto. The network effect is ev...
...e for a user in the system that's hard to build up elsewhere. Moderately direct network effect: the more that users use it, the better the quality gets. Despite this, Google stays in a commanding position because no one else has better quality,...
...near returns. You invest a linear amount of effort and get exponential returns. Network effects give this kind of personal tweak to the laws of physics.
...u can anonymously aggregate preferences of many users, this quality curve has a network effect; the quality gets stronger the more users use the system. At first, the suggestions won't be particularly good and people will actively ignore the su...
...f other options. By being prominent it becomes a schelling point. If there is a network effect to the option, then its edge can increase as more people join in, becoming a runaway gravity well effect. In a truly open system, it's harder for agg...
... Another approach is to go with the smaller ones and surf upwards by creating a network effect. Go for the easiest ones now in a way that makes it easier and easier to bring others on board in the future. Seems backwards, but in many cases, mom...
...tency signals. The proprietary access to those signals gives a very strong data network effect to the lead search engine. AI has a few similar structural things. The common crawl is (presumably) used by almost every LLM. There's also proprietar...
The same origin paradigm is lots of little silos, so network effects are hard to get going. If you put all of the silos together, it would be unsafe, but have a wild network effect. Remember that network effects go up...