Growth
Network Effect
Also known as network effects
When your product becomes more valuable to each user as more people join.
Example
A messaging app is useless with one user and essential when everyone you know is on it.
Related terms
Virality (K-factor)
How much your users bring in new users by themselves. A K-factor above 1 means each user brings more than one new user — organic, self-fuelling growth.
Moat
A lasting advantage that makes it hard for competitors to copy or beat you — like a strong brand, network effects, or unique technology.
Marketplace
A business that connects two groups — buyers and sellers — and takes a cut, without owning the inventory itself.
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