Does a big user base mean network effects?

The chapter's question

What are the different types of network effects, and which one is right for your product?

Big idea

There are three fundamental types of network effects: direct (users benefit from other users), two-sided (supply and demand reinforce each other), and data (more usage improves the product for everyone). Each type has different dynamics and strategies.

In this chapter

1. Part 2.1

   Direct Network Effects

   Among your first 100 users, how many other people does each one interact with on average?

2. Part 2.2

   Two-sided Marketplaces

   Out of every 100 buyers who come looking, how many find what they need, and which side will you subsidize to raise that number?

3. Part 2.3

   Data Network Effects

   Of the three kinds of data you collect, which one makes the product better and cannot be bought or scraped by a competitor?

Chapters of Network Effects

1. 1.Why does each new user make the product worth more?
2. 2.Does a big user base mean network effects?
3. 3.Is my learning platform a network, or just a channel?