75. What Is the Network Effect?

Retro Time // A Software Podcast

You may have never heard of “The Network Effect” but you most certainly have experienced it.

If you’ve used social media, watched TV, or subscribed to a streaming service like Spotify, or Netflix, you’ve been a part of the network effect. Even if you didn’t realize it.

The Network Effect is when a system brings value to users because of the number of other users active in the system.

The more producers on a platform the more it is desirable for users. The more users on the platform the more desirable it is for the producers to join the platform.

This week, Derek explains The Network Effect and how this might influence your approach to planning out your system.

When we think about it in the context of software, this is something that can improve the experience of our users. Or it can have a negative effect and end up hurting the experience.

When you’re in the planning phase, it’s important to think about The Network Effect and make sure you’re setting your team up for success.

Helpful Links:
• The Network Effect on Wikipedia

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