Network Effect: Avoid Or Embrace?May 29, 2011 3:21 pm
Well everyone out there seems to say “Have some viral element in your product”. There are tonnes of examples.
So we were surprised to spot this today:
“Avoid the “network effect”
I think that’s the key – an idea where a single user can benefit immediately when they sign up. Put simply, “tools”. This is the single biggest difference between idea of OnePage, my previous startup, and the idea of Buffer. OnePage, with its network effects, constrained me to working part-time for a full year and a half whilst building (little) traction, whereas Buffer, which was useful for people and had payment options from day 1, allowed me to quit my contract work completely within 5 months.”
The issue we have is, people who argue for the network effect give the exact same reason: its quick. wow.
Statistics Source: Joel.is