"As a network scales, network effects make the network more useful for users until a point after which further scale makes the network less useful to the users. This is reverse network effects with scale. There are several cases where there are reverse network effects WITHOUT scale. E.g. Users on Facebook do not like advertising so having advertisers on the network makes it a poor experience for users. However, this is not an effect that kicks in only after a certain scale is reached. Even a small number of advertisers on the network can be equally annoying. […] When reverse network effects occur with scale, the value of the network keeps on increasing at first, till it reaches a point where new user addition decreases the value of the network."
#Sangeet Paul Choudary
unicorn-meat-is-too-mainstream reblogged this from justbeingseriouslysocial
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