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138: The Network Effect Isn't Good Enough by Nir Eyal & Sangeet Paul Choudary on Nir And Far on Acquiring Users

Optimal Work Daily - Career, Productivity and Entrepreneurship

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The Power of Network Effects

Users store value in the form of data, either by actively collecting information or passively as their usage improves the service. Building reputation on a platform requires consistent delivery of highly related services and may also involve qualifying for some minimum criteria set forth by the platform. For instance, Twitter or YouTube channel subscriptions create an influence dynamic. Business models that leverage a network effect plus stored value hold the keys to the Kingdom.

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