Excellent article Tomas - your concept of Embedded is a great one. I have called this becoming part of workflow, and it is such a critical value driver for winning SaaS tools. SFDC as the great leading example.
Great article indeed, but it feels too one-sided. If it was that easy to start a network effect company, everyone would do (a lot try!). You need to be the first, fastest, offer more than others do, and continuously improving. We have seen many Facebook predecessors disappear in a matter of months/years. Will FB still exist in 10 years, or will it be replaced by Instagram or TikTok? Since you are very good at researching and analyzing, perhaps do some analysis on high potential network effect companies that "no longer exist" and why they have disappeared. Yahoo, NEtscape, Internet Explorer, MySpace, Skype, MSN messenger are just a few examples. It feels like there is a tipping point... Keep up the good work! 😊
Thanks for another great article! I'm curious about those companies that have global network effects as well (Facebook, for example). Once they have acquired every feasible customer available, what is their strategy? Do they start to plateau in your S-curve model? I have a feeling you'll get into that in your next article on the attention economy, but curious as to how you think about this!
Interesting analysis. I had to go through a quick refresher on LTV and CAC calculations to get a better grasp of your ending graphs. I'd be curious to see how that graph would look like for Facebook over the years, given their lack of revenue for such an extended period in the early days. Good stuff, cheers.
Hi Tomas, did you ever present data on correlation between social media and political polarization? I'm very interested in the topic. Thank you for all the great content here!
Excellent article Tomas - your concept of Embedded is a great one. I have called this becoming part of workflow, and it is such a critical value driver for winning SaaS tools. SFDC as the great leading example.
Great article indeed, but it feels too one-sided. If it was that easy to start a network effect company, everyone would do (a lot try!). You need to be the first, fastest, offer more than others do, and continuously improving. We have seen many Facebook predecessors disappear in a matter of months/years. Will FB still exist in 10 years, or will it be replaced by Instagram or TikTok? Since you are very good at researching and analyzing, perhaps do some analysis on high potential network effect companies that "no longer exist" and why they have disappeared. Yahoo, NEtscape, Internet Explorer, MySpace, Skype, MSN messenger are just a few examples. It feels like there is a tipping point... Keep up the good work! 😊
Thanks for another great article! I'm curious about those companies that have global network effects as well (Facebook, for example). Once they have acquired every feasible customer available, what is their strategy? Do they start to plateau in your S-curve model? I have a feeling you'll get into that in your next article on the attention economy, but curious as to how you think about this!
Interesting analysis. I had to go through a quick refresher on LTV and CAC calculations to get a better grasp of your ending graphs. I'd be curious to see how that graph would look like for Facebook over the years, given their lack of revenue for such an extended period in the early days. Good stuff, cheers.
Hi Tomas, did you ever present data on correlation between social media and political polarization? I'm very interested in the topic. Thank you for all the great content here!