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A network can become more useful as it grows
A network effect occurs when participation changes value for other users.
The idea
A messaging service can become more useful when the people you need join it. More users do not improve every product automatically.
An example
A chat app used by all your friends is easier to use for communication than an isolated alternative.
Put it into practice
Identify who benefits from each additional participant.
Further reading: OECD · The Digital Transformation of SMEs ↗
Test yourself: Which example shows a network effect?
A messaging app becoming useful as friends join
Other participants add opportunities to communicate.
Explanation and illustrative examples by One Card Wiser. Source linked for further reading.
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