Comments on: Understanding Network Effects https://alexiskold.net/2016/08/04/understanding-network-effects/ Thoughts on Tech Startups and Venture Capital Tue, 04 Apr 2017 12:50:29 +0000 hourly 1 http://wordpress.com/ By: 30 Questions Investors Ask During Fundraising - LA TechWatch https://alexiskold.net/2016/08/04/understanding-network-effects/#comment-25876 Thu, 29 Sep 2016 18:28:52 +0000 http://alexiskold.net/?p=5791#comment-25876 […] is why many investors look for natural monopolies, winner-take-all markets and businesses with network effects. This is a complex and important topic that is less likely to be top of mind for the founders, but […]

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]]> By: Alex Iskold https://alexiskold.net/2016/08/04/understanding-network-effects/#comment-25857 Wed, 14 Sep 2016 19:07:14 +0000 http://alexiskold.net/?p=5791#comment-25857 Hey there, well it is not as simple as in Facebook. In a way, you can think of Yelp as more of a marketplace with weaker network effects, because there are a lot less writers then readers. To fix this, they may want to offer more incentives, like restaurant points, to readers so that they are more incentivized to write reviews.

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]]> By: Alex Iskold https://alexiskold.net/2016/08/04/understanding-network-effects/#comment-25856 Wed, 14 Sep 2016 10:40:20 +0000 http://alexiskold.net/?p=5791#comment-25856 Hey, Natty, thanks for the comment! Do you mean as a square of the number of nodes? It is a consequence of all potential connections between the nodes. The strength of the network is in it topology / connectivity.

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]]> By: Understanding Network Effects - LA TechWatch https://alexiskold.net/2016/08/04/understanding-network-effects/#comment-25853 Tue, 13 Sep 2016 15:28:20 +0000 http://alexiskold.net/?p=5791#comment-25853 […] Reprinted by permission. […]

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]]> By: 30 Questions Investors Ask During Fundraising | Alex Iskold https://alexiskold.net/2016/08/04/understanding-network-effects/#comment-25852 Tue, 13 Sep 2016 13:13:35 +0000 http://alexiskold.net/?p=5791#comment-25852 […] Thats why many investors look for natural monopolies, winner take all markets and businesses with network effects. This is a complex and important topic that is less likely to be top of mind for the founders, but […]

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]]> By: Understanding Network Effects - AlleyWatch https://alexiskold.net/2016/08/04/understanding-network-effects/#comment-25851 Tue, 13 Sep 2016 12:27:29 +0000 http://alexiskold.net/?p=5791#comment-25851 […] Reprinted by permission. […]

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]]> By: Haris Aghadi https://alexiskold.net/2016/08/04/understanding-network-effects/#comment-25848 Tue, 30 Aug 2016 14:59:27 +0000 http://alexiskold.net/?p=5791#comment-25848 Hey Alex, great post. What are your thoughts on something like Yelp? Like Facebook, every user is also a reader and writer. But I wonder what’s the incentive for people to write reviews? Everyone wants to read reviews but not write. How can a review based product like Yelp enhance it’s network effect?

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]]> By: Nathan Black https://alexiskold.net/2016/08/04/understanding-network-effects/#comment-25838 Wed, 10 Aug 2016 05:37:15 +0000 http://alexiskold.net/?p=5791#comment-25838 Hey Alex, this is a great overview. I think a major source of insight for entrepreneurs and VCs is truly defining, measuring, and understanding user value in your network. Only then can you really thoughtfully engineer your network effects and network quality.

I wrote a little bit about a user value framework here if you’re interested in getting a bit deeper: https://medium.com/@sockcymbal/how-to-understand-value-in-network-effects-a-new-framework-77f069e84fba#.5hsvnppv4

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]]> By: Natty Zola (@NattyZ) https://alexiskold.net/2016/08/04/understanding-network-effects/#comment-25837 Tue, 09 Aug 2016 16:07:38 +0000 http://alexiskold.net/?p=5791#comment-25837 A powerful way to think about network effects is Metcalfs law = the value of a network is the product of it’s nodes. Mike Maples talks about this here: http://ecorner.stanford.edu/podcasts/3613/Dare-to-Do-Legendary-Things and http://www.slideshare.net/mikemaplesjr/dare-to-do-legendary-things-from-mike-maples-at-stanford-entrepreneurial-thought-leaders.

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]]> By: Mattermark Daily - Monday, August 8th, 2016 - Mattermark https://alexiskold.net/2016/08/04/understanding-network-effects/#comment-25836 Tue, 09 Aug 2016 00:02:08 +0000 http://alexiskold.net/?p=5791#comment-25836 […] Alex Iskold of Techstars provides a beginner’s guide to different types of network effects with specific examples in “Understanding Network Effects” […]

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]]> By: Alex Iskold https://alexiskold.net/2016/08/04/understanding-network-effects/#comment-25834 Fri, 05 Aug 2016 12:53:25 +0000 http://alexiskold.net/?p=5791#comment-25834 Yes, Heather, thank you for pointing it out. Forums, definitely have strong network effects as more people join, and contribute, they become more useful. What specifically about Teachers networks?

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]]> By: Heather https://alexiskold.net/2016/08/04/understanding-network-effects/#comment-25833 Fri, 05 Aug 2016 06:50:45 +0000 http://alexiskold.net/?p=5791#comment-25833 I noticed this network effect years ago on a technical forum. People involved were instructed to invite more friends from different areas to find solutions. The same thing works in Teachers networks.

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]]> By: Khizer Hayat https://alexiskold.net/2016/08/04/understanding-network-effects/#comment-25832 Thu, 04 Aug 2016 21:48:14 +0000 http://alexiskold.net/?p=5791#comment-25832 Thanks so much Alex. This is a fantastic article as we have been looking at this play for a while now.

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]]> By: Alex Iskold https://alexiskold.net/2016/08/04/understanding-network-effects/#comment-25831 Thu, 04 Aug 2016 21:11:31 +0000 http://alexiskold.net/?p=5791#comment-25831 Khizer, there may not be network effects here, but there are maybe Data Network Effects. You can read about it here: http://mattturck.com/2016/01/04/the-power-of-data-network-effects/

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]]> By: Khizer Hayat https://alexiskold.net/2016/08/04/understanding-network-effects/#comment-25830 Thu, 04 Aug 2016 18:48:39 +0000 http://alexiskold.net/?p=5791#comment-25830 Great article Alex, but my question is how to apply network effects to enterprise SaaS solutions where businesses might be reluctant to share their information with other businesses. One possible application would be to use feedback from different businesses to improve product usability but I’m not sure that’s going to lead to network effects. Virality can be achieved for sure.

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