The Three Systems beneath Network Effects

  • #copy The Three Systems beneath Network Effects
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    • “Acquisition Effect”:: the ability for a product to tap into its network to acquire new customers
    • “Engagement Effect”:: a denser (or more diverse) network creates higher stickiness and/or new use cases
    • “Economic Effect”:: the ability for a networked product to accelerate its monetization, reduce its costs, and otherwise improve its business model, as its network grows