4 ms·

Every business is at least some network effect, in case of bug tracking, We convince every new client we sign up to use Unfuddle unless they have a very strong

by shabda 17y ago

Every business is at least some network effect, in case of bug tracking, We convince every new client we sign up to use Unfuddle unless they have a very strong preference for any other. I am sure I must have sold >5 new clients to Unfuddle this way, and those people sold Unfuddle to a few more contractors who to few more clients who to ...

gojomo 17y ago
'Network effect' has a distinct meaning above and beyond 'positive word-of-mouth'.
- shabda 17y ago
  Sure. But how " I recommened to 5 people, who recommended to 5*(avg no of ppl influenced) * (decay factor people), who to 5*[(avg no of ppl influenced) * (decay factor people)]**2 ... " not a network effect as long as [(avg no of ppl influenced) * (decay factor people)] > 1?
  - gojomo 17y ago
    Now you're conflating 'network effect' with things like 'viral loops' or population dynamics. Again, they're distinct. 'Network effect' is the term to use when you're emphasizing that each new adopter increases the value of the installed base. A 'decay' factor doesn't usually come into such analysis. To say that any product with enthusiastic users has a 'network effect', because the users tend to influence other potential customers, robs 'network effect' of its specific meaning.
    - adw 17y ago
      In business, up to a limit, money has a network effect. More money, especially more revenue, lets you move faster and take more risks. Only true up to a limit, okay, but disposable income is agility.
      - encoderer 17y ago
        I think I'd actually say it has a "reverse network effect" (oh, christ, i hate talking like that). Seriously, though, allow me to illustrate: If the value of $1MM to you is N. And you add a second $1MM. The value is almost certainly going to be less than 2N.
        adw 17y ago
        We're talking about the utility function of money. With enough money, it's definitely the case that it goes down, but I think it goes up faster than the apparent value for a bit as well. £20k is more than twice as useful as £10k is more than twice as useful as £5k. Where the crossover is, though...
      - gojomo 17y ago
        Money can let you take more risks, market better, do things faster and larger -- but none of those capabilities are 'network effects', any more than a 'mountain lion' is a 'wedding ring'. Geez, people, is there some sort of contagious aphasia going around? Somebody call the CDC.

by shabda 17y ago

gojomo 17y ago

'Network effect' has a distinct meaning above and beyond 'positive word-of-mouth'.

shabda 17y ago
Sure. But how " I recommened to 5 people, who recommended to 5*(avg no of ppl influenced) * (decay factor people), who to 5*[(avg no of ppl influenced) * (decay factor people)]**2 ... " not a network effect as long as [(avg no of ppl influenced) * (decay factor people)] > 1?
- gojomo 17y ago
  Now you're conflating 'network effect' with things like 'viral loops' or population dynamics. Again, they're distinct. 'Network effect' is the term to use when you're emphasizing that each new adopter increases the value of the installed base. A 'decay' factor doesn't usually come into such analysis. To say that any product with enthusiastic users has a 'network effect', because the users tend to influence other potential customers, robs 'network effect' of its specific meaning.
  - adw 17y ago
    In business, up to a limit, money has a network effect. More money, especially more revenue, lets you move faster and take more risks. Only true up to a limit, okay, but disposable income is agility.
    - encoderer 17y ago
      I think I'd actually say it has a "reverse network effect" (oh, christ, i hate talking like that). Seriously, though, allow me to illustrate: If the value of $1MM to you is N. And you add a second $1MM. The value is almost certainly going to be less than 2N.
      - adw 17y ago
        We're talking about the utility function of money. With enough money, it's definitely the case that it goes down, but I think it goes up faster than the apparent value for a bit as well. £20k is more than twice as useful as £10k is more than twice as useful as £5k. Where the crossover is, though...
    - gojomo 17y ago
      Money can let you take more risks, market better, do things faster and larger -- but none of those capabilities are 'network effects', any more than a 'mountain lion' is a 'wedding ring'. Geez, people, is there some sort of contagious aphasia going around? Somebody call the CDC.