The power of network effects

This allows them to build relationships, share reviews, give advice, and co-create the experience from the inside. The platform model also relies heavily on positive network effects to enhance value as the business grows.


Well, network effects help scale your business by increasing your customer base, market share and the overall value proposition of your product, generating increased profits. If you’re wondering what a network effect is, it happens when your product increases in value the more people use it

Unlike pipes, platforms do not just create and push stuff out. They allow users to create and consume value. … At the business layer, users (producers) can create value on the platform for other users (consumers) to consume. This is a massive shift from any form of business we have ever known in our industrial hangover