In this book Andrew Chen explains how global companies overcome “cold start” problems and scale their products to billions of users using network effects.
When launching a business, two problems are inevitable: how to make a loud market entry when your product hasn’t yet attracted many people, and how to achieve viral spread.
In this book:
the firsthand experience of an executive and interviews with top managers at LinkedIn, Twitch, Zoom, Dropbox, Tinder, Uber, Airbnb, and Pinterest;
detailed breakdowns of launching successful and failed network products, with takeaways;
theoretical foundation: the complete lifecycle of network products and the general patterns of this market;
models and principles you can apply across different products and industries.
A new messenger, marketplace, or aggregator—everyone of them needs initial users to attract others and grow quickly. No matter what field you work in, network effects open the path to breakthroughs in new products by attracting customers through viral growth and word of mouth.