#Booknotes #PKM #Murmuration 《 The Cold Start Problem 》本书由 © 王川 推荐并评论“是我看到的迄今为止把网络效应的各种底层逻辑讲的最透彻的一本书”,总结由 © ShawnWang 撰写(下)。
4. Network effects breakdown
Acquisition: customers acquisition costs (CAC) of networked products decrease in term of speed, quality and number with the growth of network, since it's organic viral growth. Traditional mkting channels' CAC is increasingly high, it's hard to scale and has a diminishing return
Engagement: experience of all sides increase as network fill in. More content-> more viewers, more drivers-> more riders, more apps-> more users. However, diminishing return occurs when the network density hit threshhold. Waiting a Uber for 2 or 5 mins are basically same
Monetization: the conversion rate/ARPU increase with network growing. This trait is related to engagement and UX of network as better engagament leads to higher conversion rate. If platforms accumulate more income, they have more resources to optimize or reinforce network further
5. Ceiling, anti-network effects and countermeasures
Ceiling problem: market saturation (hard cap), utility saturation (soft cap, open 4 pivot)
Anti-network effects: diminishiing return, over-crowding, spam, trolls, context collapse, low discoverbility, style & quality dilution...
Market saturation: accurately, it's "local market" in terms of geography, demography, interest or other kind of vertical mkt. The user base of "local" market is limited setting a hard cap of growth. Extending network like city to city, low-end to high-end and i18n are inevitable
Utility saturation: the market demand for certain product functionality is limited. More and more new features and functions need to be layered on product to boost growth and expand. E.g., if mktplaces' online-acution is satruated, it needs fix pricing model (buy-it-now model)
Diminishing return: it's kind of a network satruation which means new coming users of the network contribute less value compared with early users. E.g., becoming a YTBer at early stage contribute to a larger share of content compared with joining toady. Growth curve becomes flat.
Over-crowding: For content networks, facing the huge amount of content (videos, text contents, music), people are inundated and overloaded. For mktplace, users are overwhelmed by myrid items. The solution is provide curation of content for users properly(manully or by algo).
Style & quality dilution: High quality discussion always be disincentivize due to context collpase when massive users join. Some vertical and high-end mktplaces or communites could be undermined by influx of normal users caring more abour affordability or other factors.
-Network effects = nothing without concrete context and details. We need more clarification:
-characteristics they have
-relationships between them
-how they evolve over time
Products with network effects cannot be invincible without hardwork about operation, or it will decay. Also, not all network effects are equal, it's also a spectrum. Sometimes we need other banchmark networked products to do comparative analysis
👨🌾 还没看过,仅看ShawnWang 的小总结,值得看指数70%。如果是互联网老鸟(15年+)可以快速看看,如果是互联网小白(1-5年)可以仔细看看。但总归与国内产品有很大区别的,「方法论」其实并不适用,全当多个视角。