Your Life is Driven by Network Effects A great article I read this morning by James Currier, a Managing Partner at NFX, a seed-stage venture firm headquartered in San Francisco. Recommend to read it to actually anyone. “What city you live in. Who you date or marry. Which job you choose. What clothes you wear. We all think we make these choices ourselves. It certainly /feels/ like we’re in full control. But it turns out that our choices — both in our startups and in our lives — are more constrained than we think. The unseen hand in them all is the networks that surround us and the powerful math they exert on us. Working with network effects in our 100+ companies makes it impossible not to notice how the same mechanisms and math that create near-destiny for companies also create near-destiny for us as individuals. It’s mind-blowing once you see it. These constraints are highly determinative of how your life will turn out, guiding us inexorably down one path or another in ways that are both quite predictable. Yet these forces are typically unnoticed. This article outlines how we see network effects impacting nearly every aspect of your life. With that lens, it lays out a perspective on how to make the 7 most important decisions of your life. It will hopefully help you make decisions that are more true to the kind of life you want to lead. * Network Force: The Unseen Hand * Seeing the Math at Work in Your Life * Zipf’s Law and You * Your Body and Cities Have Predictable Mathematical Patterns * How do nodes on a human network work? * In Networks, The Rich Nodes Get Richer * The math behind why dinner parties behave the way they do * How Networks Form * What Does Your Network Want from You? * Your Life’s Crossroads * The Network Topology of Your Life * Crossroads of Your Life.” Link is here: https://www.nfx.com/post/your-life-network-effects/
Your Life is Driven by Network Effects
www.nfx.com

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Justas JanauskasQoorious human
Agree or disagree?
3 months ago
Sergej ZacharevskijEnterpreneur
I agree. In many cases our choices are guided by growth hack techniques of good market specialists.
3 months ago
Tomas MaksimaviciusStartups
I've already read all articles from their blog. They changed my way looking at startups a lot. Highly recommend it. Hey, Justas, I'm thinking of building my personal blog to improve my networking in scalable way. Do you know any use cases how Qoorio could help me reach this goal?
3 months ago
Justas JanauskasQoorious human
Tomas, Qoorio or Quora?:)
3 months ago
Tomas MaksimaviciusStartups
Justas Janauskas it had to be Qoorio, autocorrect made a mess :)
3 months ago
Justas JanauskasQoorious human
I’d suggest using Qoorio as your blog publishing platform. You will be able not only publish your articles, but also have built-in methods to connect with people in real life, or allow them to connect with you. Of course the platform is not perfect yet, however we are improving it every week. Also, I think the best way to build wide and diverse network is by going out of your current social bubble and meeting all kinds of people from different industries/areas. You never know what may come up via them. I am doing that all the time, and most of exciting new opportunities/ideas come via people I have met some time ago, for a reason or curiousity. And there are plenty of poeple in Qoorio who are willing to meet other people, and many of them offer that for free. So, why don’t take this opportunity now, as later it might have been gone:)
3 months ago
Thomas DesimpelAngel Investor, Polyglot, Real Estate Investor
Justas Janauskas Very interesting and insightful. Was a good Sunday long read👌 should re read it in a few weeks to overthink... Thx for sharing.
3 months ago
Andrew Lim Mao TungWindows System Admin with a passion to motivate and likes Technology.
Thanks for sharing
3 months ago
Antanas BernatonisFirst Human IPO in the Baltics
Amazing! Justas Janauskas, can you share where to find such articles? Which people/pages do you follow and get the most useful morning readings like this from?
3 months ago

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A nice essay about the evolution of marketplaces by Li Jin and Andrew Chen, both investors @ A16Z. The first thing they say that the next trillion-dollar opportunity lies in services vs. goods. Why? In the past twenty years, we’ve transformed the way people buy goods online, and in the process created Amazon, eBay, JD.com, Alibaba, and other e-commerce giants, accounting for trillions of dollars in market capitalization. The next era will do the same to the $9.7 trillion U.S. consumer service economy, through discontinuous innovations in AI and automation, new marketplace paradigms, and overcoming regulatory capture. The service economy lags: while services make up 69% of national consumer spending, the Bureau of Economic Analysis estimated that just 7% of services were primarily digital, meaning they utilized the internet to conduct transactions. There is a clear trend that software is eating the service economy, but it’s been slow, and they unpack the reasons for that in the article. They also cover how marketplaces were evolving over the last decades, essentially in 4 eras: 1. The Listings Era (1990s). These marketplaces were the digital version of the Yellow Pages, enabling visibility into which service providers existed, but placing the onus on the user to assess providers, contact them, arrange times to meet, and transact. 2. The Unbundled Craigslist Era (2000s). Companies iterated on the horizontal marketplace model by focusing on a specific sub-vertical, enabling them to offer features tailored to a specific industry. 3. The ‘Uber for X’ Era (2009-2015). In the early 2010s, a wave of on-demand marketplaces for simple services arose, including transportation, food delivery, and valet parking. These marketplaces were enabled by widespread mobile adoption, making it possible to book a service or accept a job with the tap of a button. 4. The Managed Marketplace Era (Mid-2010s). Managed marketplaces take on additional work of actually influencing or managing the service experience, and in doing so, create a step-function improvement in the customer experience. Rather than just enabling customers to discover and build trust with the end provider, these marketplaces take on the work of actually creating trust. The big question is, what’s next? My answer is Qoorio. Watch the interview here: https://www.youtube.com/watch?v=zl14Ty5-0Ko Read the article here: https://a16z.com/2018/11/27/services-marketplaces-service-economy-evolution-whats-next/
What’s Next for Marketplace Startups? - Andreessen Horowitz
a16z.com
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How to get first active users to your empty platform? “In any marketplace, you inherently have two sides to solve. Two-sided businesses typically have a producer side and a consumer side. For this to work, both producers and consumers need to be on the platform. Platforms are initially ghost towns. Users (demand-side) see no value unless they see content from the producers (supply-side). Producers don’t contribute unless they see users consuming their content. Because of this, a ghost town continues to remain a ghost town. Since consumers are a carrot for the producers and vice versa, this problem is typically solved by providing an alternate bait to one of the sides. Once one side is seeded, it acts as a bait for the other side to come on board. Having faced this challenge while building their own startup, the aurhor did some digging on how to solve the content creation problem in the initial days, from apps that all of us admire (and secretly envy). Don’t give up because the beginnings are always the hardest. Here are some successful growth hacks of 17 of the world’s largest consumer apps, specifically content marketplaces.” Read more: https://medium.com/better-marketing/how-did-fast-growing-platforms-get-their-users-7412084d5aec Thanks to: Yannick Oswald
How Did Fast-Growing Platforms Get Their Users? | by Mayur Mundada | Better Marketing | Jun, 2020 | Medium
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Tomas MaksimaviciusStartups
Also here you can find a lot of useful hacks: https://www.dothingsthatdontscale.com/
The Network Effects Bible Another great Wednesday night material I recommend to read to anyone who is creating a marketplace or a network type business. Below are my key take aways from the read. “Network effects have been responsible for 70% of all the value created in technology since 1994 . Founders who deeply understand how they work will be better positioned to build category-defining companies. 1. Why Network Effects Are Important Network effects are mechanisms in a product and business where every new user makes the product/service/experience more valuable to every other user. 2. How Networks Work The critical mass of a network refers to the point at which the value produced by the network exceeds the value of the product itself and of competing products. This can happen at different times depending on the type of a network. Most products with network effects must ultimately reach critical mass in order to fully take advantage of the defensibility provided by their network effects. Before the size of the network reaches critical mass, the product remains quite vulnerable and may not have much value to users. For such products, the challenge is often to build enough initial value to incentivize early adopters to start using the product even before the network effects value has kicked in. 3. Properties of Networks Many network effect businesses require users to create a profile that’s visible to other nodes in the network. Networks with profiles tied to a node’s real identity, like your real personal name or real company name, are typically more effective at building network effects than networks with pseudonymous profiles (e.g. user-generated handles like “Tiger123”). 4. Building and Maintaining Network Effects We don’t suggest building single-player-only businesses. They tend to grow linearly and get dragged down by competition. 5. Related Concepts” Read the full article on NFX blog: https://www.nfx.com/post/network-effects-bible/
The Network Effects Bible
www.nfx.com

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Fatima KhechaiMindset coach & Branding consultant
Just what I needed ! Thank you for sharing!
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