Q&A with Sean Cantwell and Tomy Han
What is the network effect?
The network effect is a framework where the more users or more customers a product or platform has, the more value it creates for users, hence, the value of the product itself continues increasing organically.
But, there’s a chicken and egg issue with the network effect. Understanding how to think about that initial investment required to get to the “tipping point” where the benefits of a network effect are realized is critical.