Network Effect

So, I was just going through this book called "The Lean Startup" by "Eric Ries" where I came across this term. Also, this term was mentioned before in my platform business class. I was eager to know more about this term. 

Basically, this term means that if there are a lot of people in your business and they like your product, they will ultimately ask their friends and colleague to use that product.

We can take the example of social media. As you know, way back "Orkut" was very famous. And most of the crowd was like, hey! do you have an Orkut account?  After that, there came the era of "Facebook", starting from the college people, everyone came on this platform. Till now, many people are still using Facebook due to its network effect. 

Do you know what? Most of the platforms work on the concept of the network effect. 

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