Ep. 3 - Mapping Out the 16 Network Effects (NFX Masterclass)
In this episode, James Currier dives into the Network Effects Masterclass, exploring various types of network effects. He discusses personal utility, direct, marketplace, platform, expertise, and data network effects, with examples from Bit Torrent and Skype. He also explores social or human, tribal, and hub and spoke network effects, emphasizing their cultural and business influence.
Key Points
- Network effects are not all created equal; there are 16 distinct types that vary in strength and defensibility, such as physical, protocol, and personal utility network effects.
- The value of a network effect can be reinforced by adding additional network effects to an existing one, creating a stronger and more defensible business.
- Social and human network effects, such as language, belief, tribal, bandwagon, and hub-and-spoke, are less measurable but can significantly influence user retention and business defensibility.
Unlock the NFX map to understand how each network effect works — in episode 3 of the Network Effects Masterclass, General Partner James Currier will review the 16 types of network effects and how they reinforce each other in powerful ways. Learn to analyze the NFX map to determine how to engineer sustained, long-term growth into your startup.
This is an abridged version of episode 3 from The Network Effects Masterclass, curated for audio and listening on the go. For the full video experience, transcripts, and recommended reading, join the free Network Effects Masterclass at - NFX.com/masterclass.
Chapters
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Transcript
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