In early 2018, James Currier identified the 13 types of network effects that the NFX team has uncovered so far as listed below: Fig 1. The 13 Types of Network Effects This is an essential foundation for anyone building network effect businesses. In this post, you’ll learn how these network effects can be classified and use that information to aid with prioritizing them.
<p>The 'Network Effect' is a phenomenon whereby a good or service becomes more valuable when more people use it. When a network effect is present, the value of a product or service is dependent on the number of others using it. Over time, positive network effects can create a bandwagon effect as the network becomes more valuable and more people join, in a positive feedback loop. This section will highlight techniques to achieve the critical mass required to achieve this effect and stories about companies that have successfully done it.</p>
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