The Network Effects Manual: 16 Different Network Effects (and counting)
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The 16 Network Effects & How They Actually Work
Twitter. Amazon. Apple. Meta. Uber. Salesforce. Tesla. These are some of the most impactful and significant companies in the world. Each one is very different in a lot of ways, but there’s a single property that defines them all and lies behind their success: Network effects. Network effects are the #1 way to create defensibility in the digital world. Companies with the strongest types of network effects built into their core business model tend to win, and win big. Our three-year study shows that network effects are responsible for 70% of the value created by tech companies since the…
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