Definition
Network effects create winner-take-all markets. Every additional user adds value for every other user. Examples: marketplaces (Uber, Airbnb), social platforms (Facebook, LinkedIn), payment networks (Visa, Stripe), and developer platforms (GitHub, Salesforce AppExchange).
Frequently Asked Questions
What types of network effects exist?
Direct (same-side): more users = more value. Indirect (cross-side): more users on side A = more value for side B. Data network effects: more users = more data = better product. GitDealFlow's startup database benefits from data network effects.