Network effect
Definition
The network effect is a phenomenon in which a product’s value grows as more people use it.
Online communities tend to benefit from the network effect, as each new person brings more opportunities for engagement. Each user also has their own expertise and opinions, which makes the community more valuable.
Network effect examples
Many businesses benefit from the network effect. Social networks like Facebook, Instagram, and Twitter are great examples: as more people join these platforms, their value increases.
Other businesses that have benefited from a network effect include AirBnB, Amazon, Tinder, and Uber. You could theoretically develop a much better platform than these companies, but it would be almost impossible to compete without the user base.
Network effects can happen on a much smaller scale, too. Think about any communities you are part of. Without the input of other members, these groups would offer less value.
Related terms
Community moderation is the act of managing discussions on your platform. The role is typically performed by community moderators tasked with ensuring discussion meets your community guidelines. To moderate successfully, your rules need to be clear and accessible.
No-code platforms use a visual interface to help users build software. These tools are typically easy to use, which enables anyone to create the product they need.
