Andrew did daily journaling, wanted to find ‘the secret of Silicon Valley’ – what made this machine work? His biggest finding = “Network Effects“
You need users to make a product work, network effects are the results of positively connecting people through technology which organically makes that technology better.
Metcalfe’s law is wrong – The value of network effects does have a limit, it eventually gets to a point of supply that is difficult to navigate and has an increased number of ‘trolls’ or illegitimate users
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Tim and Andrew discuss how networks effects are the foundation of many successful tech companies and how to pick the right metrics for your startups.
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